The Commissioner of Internal Revenue has adjusted the dollar limitations for benefits and contributions that apply to retirement plans. The Social Security Administration has also increased the Social Security taxable wage base. The following chart shows the 2014 limits and the expiring limits for 2013.
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Benefit Limits Under the Internal Revenue Code and Social Security
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Description
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2013 Limit
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2014 Limit
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Compensation Cap under 401(a)(17)
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$255,000
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$260,000
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Elective Deferral Limitation under 402(g)(1) for elective deferrals for 401(k) plans, SEPs and 403(b) plans
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$17,500
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$17,500
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Catch Up Contributions for Individuals Age 50 and Older
For SIMPLE IRAs or SIMPLE 401(k) plans
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$5,500
$2,500
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$5,500
$2,500
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Defined Benefit Maximum
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$205,000
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$210,000
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Defined Contribution Maximum
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$51,000
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$52,000
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Highly Compensated Employee Compensation Limit
Key Employee in Top-Heavy Plans Compensation Limit
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$115,000
$165,000
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$115,000
$170,000
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ESOP Threshold for determining maximum account balance subject to 5-year distribution period
Regular Limit
Additional amount to lengthen 5-year period
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$1,035,000
$205,000
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$1,050,000
$210,000
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SEP Compensation Threshold for Participation
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$550
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$550
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SIMPLE IRA Maximum Pre-Tax Contribution
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$12,000
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$12,000
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Deferral Limit for Governments and Tax-Exempts (457(b))
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$17,500
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$17,500
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IRA Maximum Deduction
IRA Age 50 Catch Up
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$5,500
$1,000
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$5,500
$1,000
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Social Security Taxable Wage Base
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$113,700
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$117,000
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Health Savings Account Maximum Contributions
Family Coverage
Single Coverage
HSA Catch Up (55 and older)
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$6,450
$3,250
$1,000
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$6,550
$3,300
$1,000
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