IRS Announces 2014 Pension Limits
The IRS has announced the cost-of-living (COLA) adjustments to various pension limits that will apply in 2014. Note that there is no increase in the limit on elective deferrals under a 401(k) plan or a 403(b) annuity contract. Also, there is no increase in the deferrals under a 457 plan. This is because those limits are not adjusted unless the increase would be at least $500. The key 2014 pension limits, as well as the Social Security taxable wages base, are noted in the chart below, along with prior years' limits.
|
Limit |
2014 |
2013 |
2012 |
2011 |
|
Maximum Annual Pension Benefit |
$210,000 |
$205,000 |
$200,000 |
$195,000 |
|
Maximum Contribution to a DC Plan |
$52,000 |
$51,000 |
$50,000 |
$49,000 |
|
Maximum Elective 401(k) and 403(b) Deferrals and 457 Deferrals |
$17,500 |
$17,500 |
$17,000 |
$16,500 |
|
Qualified Plan Compensation Limit |
$260,000 |
$255,000 |
$250,000 |
$245,000 |
|
Social Security Taxable Wage Base |
$117,000 |
$113,700 |
$106,800 |
$106,800 |
If you have any questions about these or other limits or about the impact on your plan, contact your Cheiron consultant.
Cheiron is an actuarial consulting firm that provides actuarial and consulting advice. However, we are neither attorneys nor accountants. Therefore, we do not provide legal services or tax advice.