Wipfli Alerts & Updates: Updated Employee Benefit Plan and IRA Quick Reference Table 2013 & 2014


November 6, 2013
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The Internal Revenue Service has announced the cost-of-living adjustments applicable to dollar limitations for various qualified retirement plans and other amounts for 2014. Many of the pension plan limitations will remain unchanged for 2014 because the increase in the consumer price index (CPI) did not meet the statutory thresholds for their adjustment. Plan sponsors should verify that their administrative and payroll systems reflect the appropriate limits. Communications that specify benefit plan limits should be reviewed for accuracy before materials are given to participants. 

 

 
2014
2013
Compensation Limit (IRC Sec. 401(a)(17)
$260,000
 $255,000
Defined Benefit Plan Annual Benefit Limit
$210,000
 $205,000
Defined Contribution Plan Annual Contribution Limit
 $52,000
 $51,000
Social Security Tax Wage Base
 $117,000
 $113,700
Highly Compensated Employee Compensation Threshold
 $115,000
 $115,000
Key Employee Officer Compensation Threshold
 $170,000
 $165,000
SEP Compensation Threshold
 $550
 $550
 
 
 
401(k), 403(b), and SARSEPs
   
Annual Deferral Limit(2)
 $17,500
 $17,500
Catch-up Contribution(3)
 $5,500
 $5,500
457 Plan
   
Annual Deferral Limit(2)
 $17,500
 $17,500
Catch-up Contribution(3)
 $5,500
 $5,500
SIMPLE Plan
   
Annual Deferral Limit(2)
 $12,000
 $12,000
Catch-up Contribution(3)
 $2,500
 $2,500
IRA
   
Annual Deferral Limit(2)
 $5,500
 $5,500
Catch-up Contribution(3)
 $1,000
 $1,000
 
 
 
Traditional IRA Deduction Phaseout (AGI)
   
Unmarried - Active Participant
$60,000/$70,000
$59,000/$69,000
MFS - any spouse participates
$0/$10,000
$0/$10,000
MFJ-nonparticipating spouse
$181,000/$191,000
$178,000/$188,000
MFJ - participating spouse
$96,000/$116,000
$95,000/$115,000
 
 
 
Roth IRA Contribution Eligibility (AGI)
   
Joint Return
 $181,000/$191,000
$178,000/$188,000
Single, HOH
$114,000/$129,000
$112,000/$127,000
MFS - any spouse participates
$0/$10,000
$0/$10,000
In addition to the above, the Treasury Department also announced the limit you can put into a Flexible Spending Account (FSA) for 2014 remains capped at $2,500.
(1) This table has been updated based on IRS News Release (IR-2013-86), October 30, 2013.
(2) This applies to the total of all elective deferrals an individual makes for the year to 401(k) plans, 403(b) plans, SARSEPs, and SIMPLE plans. However, deferrals to each SIMPLE plan in which the individual participates are also limited, as shown later in the table.
(3) Catch-up contributions are available each year to individuals who reach age 50 by the end of the year.

If you have any questions, or for more information about the 2014 cost-of-living adjustments for retirement plans, please contact Pamela Branshaw, Thomas Krieg, Robert Buss, or your Wipfli relationship executive.

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