Legal Articles
2014 Benefit Limits
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.
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