The IRS recently announced cost-of-living adjustments for 2014.?á The following list describes some of the key limits that will apply to employer qualified retirement plans in 2014.
- The Internal Revenue Code (the ?ãCode?ÃÂ¥) section 402(g) limit on elective deferrals for employees who participate in 401(k) and 403(b) plans will remain unchanged at $17,500.
- The Code section 415(c) limit for annual additions under defined contribution plans will increase from $51,000 to $52,000.
- The Code section 414(v) catch-up contribution limit for employees aged 50 and over who participate in 401(k) and 403(b) plans will remain unchanged at $5,500.
- The Code section 415(b) annual benefit limit under a defined benefit?áplan will increase from $205,000 to $210,000.
- The Code section 416(i) dollar limit on compensation for defining a key employee in a top heavy plan will increase from $165,000 to $170,000.
- The Code section 414(q) dollar limit on compensation for defining a highly compensated employee remains unchanged at $115,000.
- The Code section 401(a)(17) annual compensation limit will increase from $255,000 to $260,000.