Trick or Treat – IRS Issues Retirement Plan Limitations for 2014

November 1, 2013

by: benefitsbclp

In keeping with the trend of issuing significant guidance around holidays, on October 31st, 2013, the IRS published its annual cost-of-living adjustments to the dollar limitations on benefits and contributions under qualified retirement plans for 2014 (IR-2013-86).  Although some limitations, such as those governing 401(k) plans and IRAs, remained unchanged for 2014, a number of other limitations were adjusted upward.  Effective January 1, 2014, the following adjusted limitations will apply to qualified retirement plans:

  • The limitation on the annual benefit under a defined benefit plan under IRC 415(b)(1)(A) will be $210,000 (increased from $205,000 in 2013);
  • The limitation for defined contribution plans under IRC 415(c)(1)(A) will be $52,000 (increased from $51,000 in 2013);
  • The annual compensation limit under for qualified trusts under IRC 401(a)(17) will be $260,000 (increased from  $255,000 in 2013);
  • The dollar limitation for key employee in a top-heavy plan under IRC 416(i)(1)(A)(i)  will be
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