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Wednesday, January 22, 2014

As a follow up to our post on November 1, 2013, regarding changes to the qualified plan limits for 2014, we’ve issued a Client Alert providing the qualified plan limits for 2014 (as well as 2011 – 2013) in tabular form.

We’ve also reproduced the limits table below for ease of reference:

Type of Limitation

2014

2013

2012 

2011

Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1))

$17,500

$17,500

$17,000

$16,500

Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate)

$5,500

$5,500

$5,500

$5,500

SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals

$2,500

$2,500

$2,500

$2,500

415 limit for Defined Benefit Plans

$210,000

$205,000

$200,000

$195,000

415 limit for Defined Contribution Plans

$52,000

$51,000

$50,000

$49,000

Annual Compensation Limit

$260,000

$255,000

$250,000

$245,000

Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993

$385,000

$380,000

$375,000

$360,000

Highly Compensated Employee 414(q)(1)(B)

$115,000

$115,000

$115,000

$110,000

Key employee in top heavy plan (officer)

$170,000

$165,000

$165,000

$160,000

SIMPLE Salary Deferral

$12,000

$12,000

$11,500

$11,500

Tax Credit ESOP Maximum balance

$1,050,000

$1,035,000

$1,015,000

$985,000

Amount for Lengthening of 5-Year ESOP Period

$210,000

$205,000

$200,000

$195,000

Taxable Wage Base

$117,000

$113,700

$110,100

$106,800

FICA Tax for employees and employers

7.65%

      7.65%

     7.65%

     7.65%

Social Security Tax for employees

6.2%

6.2%

4.2%*

4.2%*

Social Security Tax for employers

6.2%

6.2%

6.2%

6.2%

Medicare Tax for employers and employees

     1.45%

     1.45%

     1.45%

1.45%

Additional Medicare Tax**

0.9% of comp > $200,000

0.9% of comp > $200,000

*This figure reflects a 2% reduction in the rate of tax for employees pursuant to the Tax Relief Act of 2010

**For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year.

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