The IRS has announced the new limitations for pension plans and other retirement plans for 2014. Overall, the limits remain largely unchanged because the IRS stated the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment. 2014 limits that will remain the same as prior year include:
- The contribution limit for employees who participate in a 401(k), 403(b), and 457 government plan remains $17,500.
- The limit used to define highly compensated employee remains $115,000.
- The maximum 50 plus catch-up contribution remains $5,500.
Changes that will occur between 2013 and 2014 include:
- The limit for defined contribution plan will increase from $51,000 to $52,000.
- The limit for employee annual compensation limit for calculating contributions will increase to $260,000.
- The limit for key employee in a top-heavy plan will increase to $170,000.
Now that the new limits have been announced, determine what changes if any you would like to make to your retirement plan. Perhaps you would like to contribute closer to the 401(k) limit the IRS allows each year.
For more information regarding how the new 2014 limitations might be affecting your pension or other retirement plans contact ABIP. ABIP can help plan you plan your retirement in accordance to these new limitations. Let us help you get the retirement plan you deserve.