November 1, 2013
The IRS has announced the 2014 cost-of-living adjustments for various retirement plan dollar limits. The 2014 limits are as follows:
| Limit | 2012 | 2013 | 2014 |
| Section 402(g) limit for 401(k) pre-tax contributions | $17,000 | $17,500 | $17,500 |
| Section 414(v) catch-up contribution limit | $5,500 | $5,500 | $5,500 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes | $250,000 | $255,000 | $260,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit | 6.80% | 6.86% | 6.73% |
| Section 415 limit on annual additions to a defined contribution plan | $50,000 | $51,000 | $52,000 |
| Section 415 limit on annual benefits under a defined benefit plan | $200,000 | $205,000 | $210,000 |
| Compensation threshold for defining “Highly Compensated Employees” | $110,000 (in 2011) |
$115,000 (in 2012) |
$115,0001 (in 2013) |
| Compensation threshold for officers to be “Key Employees”2 | $165,000 | $165,000 | $170,000 |
| Social Security (OASDI) Wage Base | $110,100 | $113,700 | $117,000 |
1 An employee with compensation exceeding $115,000 in 2014 will be an HCE in 2015.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.
Please click here for a PDF of this newsletter.