Menu
Get In Touch
Share

Legal Articles

2014 Benefit Limits

November 5, 2013

Overview

The Internal Revenue Service and Social Security Administration have announced increases in various retirement plan benefit and employment tax limits for 2014. These adjustments are made to reflect price and wage inflation, or to implement other increases dictated by law. The limits for 2014, as compared to those in effect for the current year, are set forth below. Many of the limits remain unchanged.

 

RETIREMENT PLAN LIMITS

 

2013

2014

Limits on Benefits and Contributions:

401(k) & 403(b) plans, elective deferral limit

457(b) plan, total contribution limit

Age 50 catch-up contribution limit

Defined contribution plan, total contribution limit

Defined benefit plan, annual accrual limit

 

$17,500

$17,500

$5,500

$51,000

$205,000

 

$17,500

$17,500

$5,500

$52,000

$210,000

"Highly Compensated Employee" status applied to following year (e.g., if an employee earns $115,000 in 2013, the employee is an HCE for 2014) $115,000 $115,000
Annual Compensation Limit $255,000 $260,000
"Key Employee" officer status $165,000 $170,000

SIMPLE plans:

Elective deferral limit

Catch-up contribution limit

 

$12,000

$2,500

 

$12,000

$2,500

 

SOCIAL SECURITY LIMITS

 

2013

2014

FICA Wage Base

$113,700

$117,00

Earnings Test Threshold:

Before retirement age

Year of normal retirement

 

$15,120

$40,080

 

$15,480

$41,400

Maximum Monthly Benefit

$2,533

$2,642

 

HEALTH SAVINGS ACCOUNTS

 

2013

2014

Annual HSA Contribution Deduction Limit:

Self-only coverage

Family coverage

Catch-up contribution

 

$3,250

$6,450

$1,000

 

$3,300

$6,550

$1,000

Out-of-Pocket Spending Limit:

Self-only coverage

Family coverage

 

$6,250

$12,500

 

$6,350

$12,700

Minimum Annual Deductible:

Self-only coverage

Family coverage

 

$1,250

$2,500

 

$1,250

$2,500

 

HEALTH CARE FSA

 

2013

2014

Annual Salary Reduction Limit

$2,500

$2,500

 

QUALIFIED TRANSPORTATION FRINGE BENEFIT

 

2013

2014

Maximum Monthly Qualified Parking Benefit

$245

$250

Maximum Monthly Qualified Transit Benefit

$245

$130

For further information or questions regarding the 2014 benefit limits, please contact Wally Miller at 541-686-3299 or wmiller@schwabe.com.


IRS rules of practice require us to inform you that any federal tax advice contained in this correspondence is not intended or written to be used, and cannot be used, by the recipient or any taxpayer for the purpose of avoiding tax penalties under the Internal Revenue Code.

Professionals

Share