IRS Chart Reveals Employee Benefit Plan Adjustments
Recently, the IRS announced the cost of living changes to the dollar limits on retirement provided by employers and government welfare plans for the 2014 year. Below is the chart provided by Mondaq:
|
RETIREMENT PLAN LIMITS |
2014 |
2013 |
|
Annual compensation limit |
$260,000 |
$255,000 |
|
401(k), 403(b) & 457(b) before-tax contributions |
$17,500 |
$17,500 |
|
Catch-up contributions (if age 50 or older) |
$5,500 |
$5,500 |
|
Highly compensated employee threshold |
$115,000 |
$115,000 |
|
Key employee officer compensation threshold |
$170,000 |
$165,000 |
|
Defined benefit plan annual benefit and accrual limit |
$210,000 |
$205,000 |
|
Defined contribution plan annual contribution limit |
$52,000 |
$51,000 |
|
Employee stock ownership plan (ESOP) limit for determining thelengthening of the general five-year distribution period |
$210,000 |
$205,000 |
|
ESOP limit for determining the maximum account balance subjectto the general five-year distribution period |
$1,050,000 |
$1,035,000 |
|
|
|
|
|
HEALTH AND WELFARE PLAN LIMITS |
|
|
|
Health Flexible Spending Accounts |
|
|
|
Maximum salary reduction limit |
$2,500 |
$2,500 |
|
|
|
|
|
High Deductible Health Plans (HDHP) and Health SavingsAccounts (HSA) |
|
|
|
HDHP – Maximum annual out-of-pocket limit (excludingpremiums) |
|
|
|
Self-only coverage |
$6,350 |
$6,250 |
|
Family coverage |
$12,700 |
$12,500 |
|
HDHP – Minimum annual deductible |
|
|
|
Self-only coverage |
$1,250 |
$1,250 |
|
Family coverage |
$2,500 |
$2,500 |
|
HSA – Annual contribution limit |
|
|
|
Self-only coverage |
$3,300 |
$3,250 |
|
Family coverage |
$6,550 |
$6,450 |
|
Catch-up contributions (age 55 or older) |
$1,000 |
$1,000 |
See David E. Rogers, Ashley McCarthy, and Diane M. Morgenthaler, United States: IRS Announces Employee Benefit Plan Limits For 2014, Mondaq, Nov. 2, 2013.