On October 31, 2013, the IRS announced the 2014 cost-of-living increases applicable to the dollar limits for retirement plans. The annual limit for elective deferrals will remain $17,500 and the annual limit for catch-up contributions for individuals age 50 or over will remain $5,500. In both cases, these are the same limits that applied in 2013. The Social Security Administration also recently announced that the Social Security wage base will increase to $117,000 for 2014.
Listed below are the principal limits applicable for 2014 as compared to those for 2013.
| Limit |
2014 |
2013 |
| Compensation Limit |
$260,000 |
$255,000 |
| Elective Deferrals (401(k), 403(b)) |
$17,500 |
$17,500 |
| Catch-up Contributions |
$5,500 |
$5,500 |
| Defined Contribution Plan 415 Limit |
$52,000 |
$51,000 |
| Defined Benefit Plan 415 Limit |
$210,000 |
$205,000 |
| Highly Compensated Employee |
$115,000 |
$115,000 |
| Social Security Wage Base |
$117,000 |
$113,700 |
| SIMPLE Plan Limit |
$12,000 |
$12,000 |
| SIMPLE Catch-up Contributions |
$2,500 |
$2,500 |