2014 Retirement Plan Limits

Nov 19, 2013

pensions-limitsjpgOn October 31, 2013, the IRS released their cost-of-living adjustments (“COLA”) that will affect dollar limitations for pension plans and other retirement-related items for the 2014 tax year.  The IRS determines the COLA rates based on the changes in the Consumer Price Index.  Based on this change, some limitations such as, the elective deferral and 401(k) plan catch-up contributions, will remain unchanged, while other thresholds have increased.  For a comparison of the 2013 and 2014 retirement plan limits, see the tables below:

401(k), 403(b) and Profit Sharing Plans                2014              2013 401(k) Elective Deferrals                                                           $17,500                $17,500 Catch-up contributions (age 50 and older)                         $5,500                   $5,500 Defined contribution maximum deferral                                                                            (employee and employer contributions)                          $52,000               $51,000

Employer annual compensation limit                                $260,000             $255,000

Annual compensation of “key employees”                                                                             in a plan designated as top-heavy                                        $170,000         $165,000

Annual compensation of “highly                                                                                                 compensated employee” in a plan                                                                                 designated as top-heavy                                                         $115,000             $115,000

IRAs                                                                2014               2013 IRA Contribution Limit                                                   $5,500         $5,500 IRA Catch-up Contribution                                           $1,000         $1,000 IRA AGI Deduction Phase-Out (starting at): Joint Return                                                                       $96,000      $95,000 Single or Head of Household                                       $60,000      $59,000

For further information please contact our office.

By: Kristin Metzger, CPA

Categories: Uncategorized