The IRS has released the 2014 Cost-Of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans.
Retirement Plans
Only changes are noted in red below as many limitations that apply to retirement plans remain unchanged for 2014 due to the increase in the cost-of-living index not meeting the statutory thresholds that result in the adjustments.
| Retirement Plan Limitation | 2013 Limit | 2014 Limit |
| 401(k) and 403(b) Employee Contribution Limit | $17,500 | $17,500 |
| “Catch-Up Contribution” Limit (age 50 and older) |
$5,500 | $5,500 |
| Defined Contribution Maximum Contribution | $51,000 (plus “Catch-up”) |
$52,000 (plus “Catch-up”) |
| Defined Benefit Annual Benefit Limit | $205,000 | $210,000 |
| Highly Compensated Employee Compensation | $115,000 (look back year compensation) |
$115,000 (look back year compensation) |
| Top-Heavy Key Employee Officer Dollar Limit | $165,000 | $170,000 |
| Annual Compensation Limit | $255,000 | $260,000 |
| 457 Plan Contribution Limit | $17,500 | $17,500 |
| Social Security Taxable Wage Base | $113,700 | $117,000 |
Health and Welfare Benefit Plans
Changes to 2014 limitations for health and welfare benefit plans are noted in red in the comparative table below.
| Health and Welfare Benefit Plan Limitation | 2013 Limit | 2014 Limit |
| Health FSA Contribution Limit | $2,500 | $2,500 |
| Health Savings Account (HSA) Contribution Limits – Family – Single – Catch-Up Limit (age 55 and older) |
$6,450 |
$6,550 |
| HSA Annual Deduction Minimums – Family – Single |
$2,500 $1,250 |
$2,500 $1,250 |
| HSA Out-of-Pocket Minimums – Family – Single |
$12,500 $6,250 |
$12,700 $6,350 |
| DCAP Limit | $5,000/$2,500 (if married, filing separately) |
(if married, filing separately) |
| Qualified Transportation Fringe Benefit Monthly Limits – Qualified Parking – Transit Pass/Vanpooling |
$245 |
$250 $130 |
