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    Edwards Wildman Client Advisory: IRS Announces 2014 Retirement Plan Limitations

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    The Internal Revenue Service announced the 2014 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2014. The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, as well as the catch-up contribution limit, will remain unchanged. Other limits, such as the annual compensation limit under 401(a)(17) and maximum annual benefit/contribution limits under Code Section 415, will increase for 2014.

    Retirement Plan Limits and Social Security Wage Base

     

    2014 Limits

    2013 Limits

    401(k)/403(b)/457(b) Elective Deferrals

    $17,500

    $17,500

    Catch-Up Contribution (plans other than SIMPLE plans)

    $5,500

    $5,500

    SIMPLE Plan Employee Deferrals

    $12,000

    $12,000

    SIMPLE Plan Catch-Up Contributions

    $2,500

    $2,500

    Plan Maximum Annual Contribution – Defined Contribution Plans (Section 415(c))

    $52,000

    $51,000

    Maximum Annual Benefit – Defined Benefit Plans (Section 415(b))

    $210,000

    $205,000

    Compensation Limit under Section 401(a)(17)

    $260,000

    $255,000

    Highly Compensated Employee Definition under Section 414(q)

    $115,000

    $115,000

    Key Employees Officer Compensation for Top-Heavy Plans

    $170,000

    $165,000

    Maximum ESOP Account Balance Subject to 5-Year Distribution Period

    $1,050,000

    $1,035,000

    ESOP Dollar Amount Used to Determine the Lengthening of the 5-Year Distribution Period

    $210,000

    $205,000

    Special Annual Compensation Limit for Governmental Plans in effect on July 1, 1993

    $385,000

    $380,000

    Social Security (FICA) Wage Base

    $117,000

    $113,700

    Health Savings Account and High Deductible Health Plan Limits
    Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2014, which reflect an increase from 2013.

    Health Savings Accounts/HDHP Limits

     

    2014 Limits

    2013 Limits

    Annual Contribution Limit – HSA Contribution

     

     

    Self-Only Coverage

    $3,330

    $3,250

    Family Coverage

    $6,550

    $6,450

    High Deductible Health Plan – Minimum Annual Deductible

     

     

    Self-Only Coverage

    $1,250

    $1,250

    Family Coverage

    $2,500

    $2,500

    High Deductible Health Plan – Maximum Out of Pocket Limit

     

     

    Self-Only Coverage

    $6,350

    $6,250

    Family Coverage

    $12,700

    $12,500


    If you have any questions regarding these issues, please contact the Edwards Wildman Palmer LLP lawyer responsible for your affairs or any Employee Benefits and Executive Compensation attorney.

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