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Tax & Assurance Guidance

Cost of Living Adjustments for Retirement and Health & Welfare Benefit Plans

Posted on December 7, 2013 by

Dave Van Damme

Dave Van Damme

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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
$3,250
$1,000

 

$6,550
$3,300
$1,000

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
$245

 
 
$250
$130

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Dave Van Damme

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Leading the firm's advisory & assurance group, Dave supports closely held businesses with audits, financial reporting and fraud analysis.

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