IRS Announces COLA Increases for Dollar Limitations on Benefits and Contributions

On October 31, 2013 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2014. Increases were not made to the individual limits on deferrals and catch-up contributions. However, the IRS increased from last year most of the general pension plan limitations, including the limit on annual compensation, as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.

Code

Section

2014

2013

401(a)(17)/404(l)Annual Compensation

$260,000

$255,000

402(g)(1)Elective Deferrals

17,500

17,500

414(v)(2)(B)(i)Catch-up Contributions

5,500

5,500

415(b)(1)(A)Defined Benefit Plan Limit

210,000

205,000

415(c)(1)(A)Defined Contribution Plan Limit

52,000

51,000

457(e)(15)Deferral Limits

17,500

17,500

414(q)(1)(B)Highly Compensated Employee Threshold

115,000

115,000

409(o)(1)(C)ESOP Limits          1,050,000

210,000

1,035,000

205,000

416(i)(1)(A)(i)Key Employee

170,000

165,000

408(p)(2)(E)SIMPLE Max. Contributions

12,000

12,000

414(v)(2)(B)(ii)SIMPLE Catch-up Contributions

2,500

2,500

408(k)(2)(C)SEP Min. Compensation

550

550

408(k)(3)(C)SEP Max. Compensation

260,000

255,000

1.61-21(f)(5)(i)Control Employee

105,000

100,000

1.61-21(f)(5)(iii)Control Employee

210,000

205,000

Social Security Tax Wage Base

117,000

113,700

Stephanie A. Smithey is a shareholder in the Indianapolis office of Ogletree Deakins.

- See more at: http://blog.ogletreedeakins.com/irs-announces-cola-increases-for-dollar-limitations-on-benefits-and-contributions-2/#sthash.OI1m2jIN.dpuf

On October 31, 2013 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2014. Increases were not made to the individual limits on deferrals and catch-up contributions. However, the IRS increased from last year most of the general pension plan limitations, including the limit on annual compensation, as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.

Code

Section

2014

2013

401(a)(17)/404(l)Annual Compensation

$260,000

$255,000

402(g)(1)Elective Deferrals

17,500

17,500

414(v)(2)(B)(i)Catch-up Contributions

5,500

5,500

415(b)(1)(A)Defined Benefit Plan Limit

210,000

205,000

415(c)(1)(A)Defined Contribution Plan Limit

52,000

51,000

457(e)(15)Deferral Limits

17,500

17,500

414(q)(1)(B)Highly Compensated Employee Threshold

115,000

115,000

409(o)(1)(C)ESOP Limits          1,050,000

210,000

1,035,000

205,000

416(i)(1)(A)(i)Key Employee

170,000

165,000

408(p)(2)(E)SIMPLE Max. Contributions

12,000

12,000

414(v)(2)(B)(ii)SIMPLE Catch-up Contributions

2,500

2,500

408(k)(2)(C)SEP Min. Compensation

550

550

408(k)(3)(C)SEP Max. Compensation

260,000

255,000

1.61-21(f)(5)(i)Control Employee

105,000

100,000

1.61-21(f)(5)(iii)Control Employee

210,000

205,000

Social Security Tax Wage Base

117,000

113,700

Stephanie A. Smithey is a shareholder in the Indianapolis office of Ogletree Deakins.

- See more at: http://blog.ogletreedeakins.com/irs-announces-cola-increases-for-dollar-limitations-on-benefits-and-contributions-2/#sthash.OI1m2jIN.dpuf
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IRS Announces COLA Increases for Dollar Limitations on Benefits and Contributions

On October 31, 2013 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2014. Increases were not made to the individual limits on deferrals and catch-up contributions. However, the IRS increased from last year most of the general pension plan limitations, including the limit on annual compensation, as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.

Code

Section

2014

2013

401(a)(17)/404(l)Annual Compensation

$260,000

$255,000

402(g)(1)Elective Deferrals

17,500

17,500

414(v)(2)(B)(i)Catch-up Contributions

5,500

5,500

415(b)(1)(A)Defined Benefit Plan Limit

210,000

205,000

415(c)(1)(A)Defined Contribution Plan Limit

52,000

51,000

457(e)(15)Deferral Limits

17,500

17,500

414(q)(1)(B)Highly Compensated Employee Threshold

115,000

115,000

409(o)(1)(C)ESOP Limits          1,050,000

210,000

1,035,000

205,000

416(i)(1)(A)(i)Key Employee

170,000

165,000

408(p)(2)(E)SIMPLE Max. Contributions

12,000

12,000

414(v)(2)(B)(ii)SIMPLE Catch-up Contributions

2,500

2,500

408(k)(2)(C)SEP Min. Compensation

550

550

408(k)(3)(C)SEP Max. Compensation

260,000

255,000

1.61-21(f)(5)(i)Control Employee

105,000

100,000

1.61-21(f)(5)(iii)Control Employee

210,000

205,000

Social Security Tax Wage Base

117,000

113,700

Stephanie A. Smithey is a shareholder in the Indianapolis office of Ogletree Deakins.

- See more at: http://blog.ogletreedeakins.com/irs-announces-cola-increases-for-dollar-limitations-on-benefits-and-contributions-2/#sthash.OI1m2jIN.dpuf

On October 31, 2013 the Internal Revenue Service (IRS) announced the cost-of-living adjustments impacting tax-qualified pension plans for 2014. Increases were not made to the individual limits on deferrals and catch-up contributions. However, the IRS increased from last year most of the general pension plan limitations, including the limit on annual compensation, as the cost-of-living index increase met the statutory thresholds that trigger adjustments. The following table highlights some of the key limits that affect tax-qualified pension plans.

Code

Section

2014

2013

401(a)(17)/404(l)Annual Compensation

$260,000

$255,000

402(g)(1)Elective Deferrals

17,500

17,500

414(v)(2)(B)(i)Catch-up Contributions

5,500

5,500

415(b)(1)(A)Defined Benefit Plan Limit

210,000

205,000

415(c)(1)(A)Defined Contribution Plan Limit

52,000

51,000

457(e)(15)Deferral Limits

17,500

17,500

414(q)(1)(B)Highly Compensated Employee Threshold

115,000

115,000

409(o)(1)(C)ESOP Limits

         1,050,000

 

210,000

1,035,000

205,000

416(i)(1)(A)(i)Key Employee

170,000

165,000

408(p)(2)(E)SIMPLE Max. Contributions

12,000

12,000

414(v)(2)(B)(ii)SIMPLE Catch-up Contributions

2,500

2,500

408(k)(2)(C)SEP Min. Compensation

550

550

408(k)(3)(C)SEP Max. Compensation

260,000

255,000

1.61-21(f)(5)(i)Control Employee

105,000

100,000

1.61-21(f)(5)(iii)Control Employee

210,000

205,000

Social Security Tax Wage Base

117,000

113,700