2014 Benefits Limitations

The IRS announced cost-of-living adjustments to various dollar limitations that will apply to benefit plans for 2014.

  2014 2013 2012 2011 2010 2009
401(k)/403(b) plan maximum elective deferral $17,500  $17,500  $17,000  $16,500  $16,500  $16,500 
457 deferral limit $17,500 $17,500 $17,000 $16,500 $16,500 $16,500
401(k)/403(b)/457 catch-up $5,500 $5,500 $5,500 $5,500 $5,500 $5,500
Defined contribution maximum annual addition $52,000 $51,000 $50,000 $49,000 $49,000 $49,000
Defined benefit maximum annual pension $210,000 $205,0001 $200,0001 $195,0001 $195,0001 $195,0001
Qualified plans maximum compensation limit $260,000 $255,000 $250,000 $245,000 $245,000 $245,000
Highly compensated $115,000 $115,000 $115,000 $110,000 $110,000 $110,000
Transit pass limit $130 $245 $240 $230 $230 $230
Parking benefit limit $250 $245 $240 $230 $230 $230
IRA limit $5,500 $5,500 $5,500 $5,500 $5,500 $5,500
IRA catch-up $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
SIMPLE limit $12,000 $12,000 $11,500 $11,500 $11,500 $11,500
SIMPLE catch-up $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Taxable Wage Base

          2014 2013 2012 2011 2010 2009
Social Security $117,000  $113,700  $110,100  $106,800  $106,800  $106,800 
Medicare  no limit no limit no limit no limit no limit no limit

Payroll Tax Rate

  2014   2013 2012 2011 2010 2009
Social Security - employee    

6.20%2     

6.20%2  4.20%  4.20%  6.20%  6.20% 
Social Security - employer 6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
Medicare  1.45%  1.45%  1.45%  1.45%  1.45%  1.45%

1 Applies to limitation years ending within the calendar year.
2 Does not reflect additional 0.9% on amounts above $200,000 for individuals and $250,000 for married filing jointly.

Topics:  COLA, Employee Benefits, IRS

Published In: Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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