- 401(k), 403(b) and profit-sharing plan elective deferrals in 2014 will remain at $17,500; the catch-up contribution limit will stay at $5,500.
- The annual defined contribution limit from all sources will rise to $52,000 from $51,000.
- The amount of employee compensation that can be considered in calculating contributions to defined contribution plans will increase to $260,000 from $255,000.
- The limit used in the definition of a highly compensated employee for the purpose of 401(k) nondiscrimination testing remains unchanged at $115,000.
|
Defined Contribution Plan Limits |
2014 |
2013 |
|
Maximum elective deferral by employee |
$ 17,500 |
$ 17,500 |
|
Catch-up contribution (age 50 and older during 2012) |
5,500 |
5,500 |
|
Defined contribution maximum deferral (employer and employee combined) |
52,000 |
51,000 |
|
Employee annual compensation limit for calculating contributions |
260,000 |
255,000 |
|
Annual compensation of “key employees” in a top-heavy plan |
170,000 |
165,000 |
|
Annual compensation of “highly compensated employee” in a top-heavy plan (“HCE threshold”) |
$ 115,000 |
$ 115,000 |
Other Workplace Retirement Plan Limits
|
Non-401(k) Workplace Retirement Plan Limits |
2014 |
2013 |
|
SIMPLE employee deferrals |
$ 12,000 |
$ 12,000 |
|
SIMPLE catch-up deferrals |
2,500 |
2,500 |
|
SEP minimum compensation |
550 |
550 |
|
SEP annual compensation limit |
260,000 |
255,000 |
|
Social Security wage base |
$ 117,000 |
$ 113,700 |
Individual Retirement Accounts
- The limit on annual contributions to an individual retirement account (IRA) will stay at $5,500. The additional catch-up contribution limit for those ages 50 and over will remain $1,000.
- The deduction for taxpayers making contributions to a traditional IRA has been phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGIs) from $60,000 to $70,000, up from $59,000 to $69,000 in 2013.
- For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the AGI phase-out range will be $96,000 to $116,000, up from $95,000 to $115,000.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction has been phased out for couples with an AGI from $181,000 to $191,000, up from $178,000 to $188,000.
- For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and will remain $0 to $10,000.
- For a Roth IRA, the AGI phase-out range for taxpayers making contributions will be $181,000 to $191,000 for married couples filing jointly, up from $178,000 to $188,000 in 2013. For singles and heads of household, the income phase-out range will be $114,000 to $129,000, up from $112,000 to $127,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range will remain $0 to $10,000.
- The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low- and moderate-income workers will rise to $60,000 for married couples filing jointly, up from $59,500 in 2013; $45,050 for heads of household, up from $44,250; and $30,000 for singles and married couples filing separately, up from $29,500.
