iOn October 31, 2013, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for employee benefit plans for 2014. The announcement was delayed about two weeks because of the federal government shutdown in October.
The following are some of the commonly referenced retirement plan dollar limits for 2014:
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The elective deferral, or contribution, limit for employees who participate in 401(k), 403(b), and most 457 plans will remain unchanged at $17,500;
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The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), and most 457 plans will remain unchanged at $5,500;
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The limitation for defined contribution plans will increase to $52,000 from $51,000;
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The annual compensation limit that a plan may consider in calculating contribution allocations will increase to $260,000 from $255,000; and
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The compensation amount used to determine highly compensated employees remains unchanged at $115,000.
For a complete list of the 2014 dollar limits, please see the IRS’ announcement here.
