Many Employee Retirement Plan Dollar Limits Adjusted For 2014

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The Internal Revenue Code provides for various dollar limitations on benefits, contributions, and compensation for tax-qualified employee benefit plans.  Recently, the Internal Revenue Service announced cost of living adjustments (COLAs) for 2014, including limits relating to 401(k) and other tax-qualified retirement plans.  Some dollar limits such as the salary deferral contribution limit to 401(k) plans will remain unchanged, while other limitations will increase.  Other highlights include:

  • the maximum total contribution to a 401(k) or other “defined contribution” plan increased from $51,000 to $52,000 ($57,500 for employees aged 50 and older).
  • the salary deferral limit for 401(k), 403(b), and 457 plans remains unchanged at $17,500. The age 50 or older catch-up contribution limit for these plans also remains unchanged at $5,500.
  • the annual benefit limit under a defined benefit plan is increased from $205,000 to $210,000

 

Topics:  401k, COLA, Employee Benefits, IRS, Retirement

Published In: Finance & Banking Updates, 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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