Friday, November 1, 2013

2014 IRS Limits -- Better Late than Never

As all those of you who weren't hiding away from your computer, smartphone, tablet, television, radio, and friends know, we had a little shutdown in Washington DC in the first part of last month. Non-essential employees not only weren't being paid to work, they weren't allowed to work.

Of course for many of us who are benefits professionals, knowing the 2014 limitations under various Code sections is pretty darn essential. But, the powers that be, who by the way wield far more power than your sometimes faithful blogger, decided that this was not among the essential functions.

Well, your government is back at work and therefore, we have our 2014 limits. Drum roll please ...

High-deductible health plans (HDHPs) 

  • The annual limitation on deductions for an individual with self-only coverage increased from $3,250 to $3,300.
  • For an individual with family coverage, that limitation increased from $6,450 to $6,550.
  • A plan is high deductible the annual deductible is at least $1,250 (unchanged) for single coverage or $2,500 for family coverage and the annual out-of-pocket limits do not exceed $6,350 (up from $6,250) for single coverage or $12,700 (up from $12,500) for family coverage.
  • The IRA contribution limit remains at $5,500
  • The IRA catch-up limit remains at $1,000
  • The Adjusted Gross Income (AGI) phase-out starts at $96,000 (up from $95,000) for joint filers and $60,000 (up from $59,000) for individual filers
  • SEP minimum compensation remains at $550
  • SEP maximum compensation increased to $260,000 from $255,000
  • SIMPLE maximum contributions remain at $12,000
  • SIMPLE catch-up contribution limits remain at $2,500
Other Limits
  • 401(a)(17) pay cap up to $260,000 from $255,000
  • 402(g) limit on elective deferrals to a 401(k) or 403(b) plan remains at $17,500
  • The catch-up contribution limit remains at $5,500
  • The 415(c) limit for annual additions to defined contribution plans has increased to $52,000 from $51,000
  • The maximum account balance in an ESOP subject to a 5-year distribution period increased to $1,050,000 from $1,035,000
  • The dollar amount used to determine the lengthening of the 5-year distribution period in an ESOP increased from $205,000 to $210,000
  • The HCE threshold remained steady at $115,000
  • The maximum benefit limitation for defined benefit plans under Code Section 415(b) increased from $205,000 to $210,000
  • The compensation threshold for being a key employee (Section 416) increased to 170,000 from $165,000
  • The Section 457 limit on elective deferrals remained unchanged at $17,500
  • The taxable wage base increased from $113,700 to $117,000

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