Author: Courtney S. Barrack, CPA
The IRS announced on October 31, 2013 the cost-of-living adjustments for dollar limitations on benefits and contributions under qualified retirement plans for tax year 2014. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
Some pension limitations, such as elective deferral contributions and catch-up contributions for 401(k), 403(b), and 457(b) plans, will remain unchanged. These limitations are adjusted by reference to Section 415(d) of the Internal Revenue Code, and the increase in the Consumer Price Index (1.5%) did not meet the statutory thresholds that trigger their adjustment.
The limits and thresholds are published on the IRS website.
For additional information related to these changes or any other questions regarding plan qualification, please contact any member of the Keiter team of employee benefit plan specialists.
For IRA and other benefit related limits, click here.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.