2014 Pension Plan Limitations Announced

The 2014 pension plan limitations have been announced.  Below are some of the more common amounts.

The defined benefit plan limitation increases to $210,000 (up from $205,000 for 2013).  The defined contribution plan maximum increases to $52,000 (up from $51,000 for 2013).

The annual compensation limit for most employer contributions increases to $260,000 (up from $255,000 for 2013).

A year of service for SEP coverage remains at $550.

The maximum elective deferral for §401(k), §403(b), §457, and SARSEPs remains the same at $17,500 with the catch-up amount staying at $5,500.

The maximum elective deferral to SIMPLE plans remains at $12,000 with a catch-up of $2,500.

The IRS Notice also has the other pension related indexed amounts such as key employee, top heavy, and “control employee” limits.

A copy of this Notice can be found at www.irs.gov/pub/ by clicking on irs-news and then clicking on IR-13-85