IRS Announces 2014 Retirement Plan Limits
On October 31, 2013, the IRS announced the cost-of-living adjustments that will affect the dollar limitations for pension and other retirement plans for the 2014 tax year. Notably, the $17,500 annual contribution limit for employees who participate in 401(k) plans remains the same for 2014.
| Maximum Qualified Retirement Plan Dollar Limits |
||
| 2013 |
2014 |
|
| Limit on Section 401(k) deferrals (Section 402(g)) |
$17,500 |
$17,500 |
| Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) |
$5,500 |
$5,500 |
| Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) |
$17,500 |
$17,500 |
| Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) |
$205,000 |
$210,000 |
| Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) |
$51,000 |
$52,000 |
| Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) |
$255,000 |
$260,000 |
| Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) |
$115,000 |
$115,000 |
| Dollar amount for the definition of key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) |
$165,000 |
$170,000 |
| Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) |
$1,035,000 |
$1,050,000 |
| SIMPLE retirement account limitation (Section 408(p)(2)(E)) |
$12,000 |
$12,000 |
| Social Security Taxable Wage Base |
$113,700 |
$117,000 |
If you would like to read the IRS announcement in its entirety, click here.
