Cost of Living Adjustments Effective for Plan Years Beginning 1/1/2014
Slightly later than usual, on October 31, 2013, the Internal Revenue Service announced the cost-of-living adjustments that apply to dollar limitations for retirement plans and other relevant limits for the tax year beginning on January 1, 2014. Some of the limits, such as salary deferral and IRA contribution maximums, remain the same because the increase in the Consumer Price Index did not meet the required threshold for adjustment; however, other limits such as maximum annual additions and compensation, experienced modest increases.
In similar fashion, a day earlier, the Social Security Administration announced that a 1.5 percent adjustment to benefits and limits will be made for 2014, and the Social Security Taxable Wage base will increase from $113,700 to $117,000.
We have highlighted the year-over-year changes for easy identification.
For more information on how these limits may affect your clients and to take advantage of the opportunities they may present, please call us at (888) 926-0600 or send an email to firstname.lastname@example.org. Your Retirement Services subject matter experts are ready to help.
*This Summary is designed to provide an overview of the dollar limitations for retirement plans and other relevant limits for 2014 and is not intended to be comprehensive.
** To be used for determination of the Highly Compensated Employee status in 2014 based on 2013 earnings.