On October 31, 2013 the Internal Revenue Service and the Social Security Administration announced cost-of- living adjustments affecting dollar limitations for pension plans and other retirement–related items for the tax year 2014. The following highlights a breakdown of limits that have changed, as well as those that remain unchanged:
Limits that remain unchanged:
401(k), 403(b) & 457(b) deferrals $17,500
Catch-up contribution limit 401(k), 403(b) & 457(b) $5,500
Limit on annual contribution ages 50+ $6,500
Limit on annual contributions to IRA<50 $5,500
AGI phase-out range married filing individually $0 to $10,000
HCE Compensation Limit $115,000
SIMPLE Deferrals $12,000
SIMPLE Catch-up $2,500
SEP Minimum Compensation $550
Limits that have changed:
415(c) Limit $52,000
Annual Compensation Limit $260,000
Maximum Pension at Age 62 $210,000
Key Employee Limit, Officer Test $170,000
Social Security Taxable Wage Base $117,000
2014 limits reflect issuance of IRS News Release IR-2013-86 (October 31, 2013) and Social Security Administration News Release (October 30, 2013).
The IRS news release can be viewed at: http://www.irs.gov/uac/IRS-Announces-2014-Pension-Plan-Limitations;-Taxpayers-May-Contribute-up-to-$17,500-to-their-401(k)-plans-in-2014
The Social Security Administration news release can be viewed at: http://www.ssa.gov/pressoffice/pr/2014cola-pr.html
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