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.