CPA & Business Advisory Blog

IRS Announces Qualified Plan Limitations for 2014

On October 31, 2013 the IRS announced cost-of-living adjustments (COLAs) affecting dollar limits for defined contribution and defined benefit retirement plans and other retirement-related items for tax year 2014. The changes are not large due to the moderate inflation rate that the US economy has experienced during the last year.  
 

Contribution Limits

2014

2013

Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans

$17,500

$17,500

Catch-Up Contribution Limit

$5,500

$5,500

Elective Deferral Limit – SIMPLE Retirement Plan

$12,000

$12,000

Catch-Up Contribution Limit – SIMPLE Retirement Plan

$2,500

$2,500

Contribution Limit – IRA

$5,500

$5,500

Catch-Up Contribution Limit – IRA

$1,000

$1,000

Benefits and Compensation

 

 

Defined Contribution Plan Annual Addition Limit

$52,000

$51,000

Defined Benefit Plan Annual Benefit Limit

$210,000

$205,000

Annual Compensation Limit

$260,000

$255,000

Highly Compensated Employee Limit

$115,000

$115,000

Key Employee Compensation Limit

$170,000

$165,000

Social Security/Medicare

 

 

Social Security Wage Base

$117,000

$113,700

Medicare Wage Base

No Limit

No Limit

 

We would be pleased to discuss issues related to qualified plans.  For more information on this topic, post a comment below or contact our Compensation & Benefits Advisory Services Group at 440-449-6800.
 

 

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