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