2014 Qualified Plan Cost of Living Increases, 2014 Social Security Taxable Wage Base

November 1, 2013

The Internal Revenue Service has announced the cost-of-living adjustments for the various qualified retirement plan limits. Many of the limits shown below are unchanged from last year.

Qualified Plan Limit Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit 2013:  $17,500

2014:  $17,500

$200,000 compensation limit 2013:  $255,000

2014:  $260,000

$160,000 defined benefit limit 2013:  $205,000

2014:  $210,000

$40,000 defined contribution limit 2013:  $51,000

2014:  $52,000

$80,000 definition of highly compensated employee 2013:  $115,000

2014:  $115,000

SIMPLE IRA deferral limit 2013:  $12,000

2014:  $12,000

Code Section 457 deferred compensation plan deferral limit 2013:  $17,500

2014:  $17,500

Code Section 414(v) catch-up contribution limit for employee deferrals 2013:  $5,500

2014:  $5,500


All of the above are plan year limits (i.e., for the plan year which begins in 2014), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $117,000 for 2014.

If you have questions regarding the above, please contact Mary Ellen Schill, the author of this article, or any of the attorneys in the Employment, Benefits & Labor Relations Practice Group of Ruder Ware.

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