Understanding Employee Benefits

IRS ANNOUNCES 2014 BENEFIT PLAN LIMITS

By | November 1, 2013

The Internal Revenue Service has released the 2014 cost of living adjustments affecting dollar limits on benefits and contributions under qualified retirement plans. http://www.irs.gov/Retirement-Plans/COLA-Increases-for-Dollar-Limitations-on-Benefits-and-Contributions The following chart summarizes 2014 retirement plan limits and other benefit plan limits. The 2013 limits are also listed for reference purposes:

2013

2014

 

Elective Deferral   Limit 401(k), 403(b), 457(b)

$17,500

$17,500

 

Catch-up Limit (age   50+)

$5,500

$5,500

 

Defined Benefit Limit

$205,000

$210,000

 

Defined   Contribution Limit

$51,000

$52,000

 

Dollar Limit –   Highly Compensated Employees

$115,000

$115,000

 

Officer-Key   Employee

$165,000

$170,000

 

Annual Compensation   Limit

$255,000

$260,000

 

SEP Eligibility Compensation   Limit

$550

$550

 

SIMPLE Deferral   Limit

$12,000

$12,000

 

SIMPLE Catch-up   Limit (age 50+)

$2,500

$2,500

 

Social Security   Taxable Wage Base

$113,700

$117,000

 

ESOP 5 Year   Distribution Extension

Account minimum

Additional amount for   1 year extension

$1,035,000

$205,000

$1,050,000

$210,000

 

HSA (self/family)

Maximum annual   contribution

HDHP minimum   deductible limits

Out-of-pocket expense   annual maximum

$3,250/$6,450

$1,250/$2,500

$6,250/$12,500

$3,300/$6,550

$1,250/$2,500

$6,350/$12,700

Contact Benefits Notes for more information.

Topics: 
Retirement Plans