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
0 Google +0 0 
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
|
