2014 Retirement Plan Limit Increases Announced

The IRS announced yesterday the new limits for 2014. The most important changes applicable to retirement plans are outlined below.

The §415(c)(1)(A) limit on total contributions to a defined contribution plan was increased from $51,000 to $52,000.

The §415(b)(1)(A) limitation on the annual benefit under a defined benefit pension plan increased from $205,000 to $210,000.

The dollar threshold for determining “highly compensated employee” status remains at $115,000, and the annual compensation limit under §401(a)(17) that governs the amount of compensation that may be considered in a defined contribution plan increased from $255,000 to $260,000.

The §402(g) elective deferral (employee contribution) limit and the “catch-up” contribution limit both remain unchanged at $17,500 and $5,500, respectively, for 401(k), 403(b) and most 457 plans.

Additionally, the taxable wage base for social security increased from $113,700 to $117,000.  For a full listing of changes, including those impacting IRAs, SEPs and SIMPLEs, please see  the IRS’ COLA Table.

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