COLA Increases for Dollar Limitations on Benefits and Contributions
Posted by William Byrnes on September 22, 2014
The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 31, 2013 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2014.
Please see the COLA Increases Table below for prior years’ dollar limitations and Internal Revenue Code references.
| 2014 | 2013 |
2012 |
|
|---|---|---|---|
|
IRAs |
|||
| IRA Contribution Limit | $5,500 | $5,500 | $5,000 |
| IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 |
|
IRA AGI Deduction Phase-out Starting at |
|||
| Joint Return | 96,000 | 95,000 | 92,000 |
| Single or Head of Household | 60,000 | 59,000 | 58,000 |
|
SEP |
|||
| SEP Minimum Compensation | 550 | 550 | 550 |
| SEP Maximum Contribution | 52,000 | 51,000 | 50,000 |
| SEP Maximum Compensation | 260,000 | 255,000 | 250,000 |
|
SIMPLE Plans |
|||
| SIMPLE Maximum Contributions | 12,000 | 12,000 | 11,500 |
| Catch-up Contributions | 2,500 | 2,500 | 2,500 |
|
401(k), 403(b), Profit-Sharing Plans, etc. |
|||
| Annual Compensation | 260,000 | 255,000 | 250,000 |
| Elective Deferrals | 17,500 | 17,500 | 17,000 |
| Catch-up Contributions | 5,500 | 5,500 | 5,500 |
| Defined Contribution Limits | 52,000 | 51,000 | 50,000 |
| ESOP Limits | 1,050,000 210,000 |
1,035,000205,000 | 1,015,000200,000 |
|
Other |
|||
| HCE Threshold | 115,000 | 115,000 | 115,000 |
| Defined Benefit Limits | 210,000 | 205,000 | 200,000 |
| Key Employee | 170,000 | 165,000 | 165,000 |
| 457 Elective Deferrals | 17,500 | 17,500 | 17,000 |
| Control Employee (board member or officer) | 105,000 | 100,000 | 100,000 |
| Control Employee (compensation-based) | 210,000 | 205,000 | 205,000 |
| Taxable Wage Base | 117,000 | 113,700 | 110,100 |
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