Benefit Limits and Contributions for 2014

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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.

Benefit Limits Under the Internal Revenue Code and Social Security

Description

2013 Limit

2014 Limit

Compensation Cap under 401(a)(17)

$255,000

$260,000

Elective Deferral Limitation under 402(g)(1) for elective deferrals for 401(k) plans, SEPs and 403(b) plans

$17,500

$17,500

Catch Up Contributions for Individuals Age 50 and Older

For SIMPLE IRAs or SIMPLE 401(k) plans

$5,500

$2,500

$5,500

$2,500

Defined Benefit Maximum

$205,000

$210,000

Defined Contribution Maximum

$51,000

$52,000

Highly Compensated Employee Compensation Limit

Key Employee in Top-Heavy Plans Compensation Limit

$115,000

$165,000

$115,000

$170,000

ESOP Threshold for determining maximum account balance subject to 5-year distribution period

Regular Limit
Additional amount to lengthen 5-year period

 

 
$1,035,000
$205,000

 


$1,050,000
$210,000

SEP Compensation Threshold for Participation

$550

$550

SIMPLE IRA Maximum Pre-Tax Contribution

$12,000

$12,000

Deferral Limit for Governments and Tax-Exempts (457(b))

$17,500

$17,500

IRA Maximum Deduction

IRA Age 50 Catch Up

$5,500

$1,000

$5,500

$1,000

Social Security Taxable Wage Base

$113,700

 $117,000

Health Savings Account Maximum Contributions

Family Coverage
Single Coverage
HSA Catch Up (55 and older)

 


$6,450
$3,250
$1,000

 


$6,550
$3,300
$1,000

 


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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