2014 Cost of Living Adjustments

The IRS has released the cost of living adjustments that affect the dollar limits for both retirement plans and flexible spending accounts for the 2014 tax year. Some limits will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment.  However, other limits will increase.  The limits below for Health Savings Accounts were released earlier this year. Please see below for details.   

  2013 2014
Retirement Limitations
401(k) / 403(b) / 457 Plan Maximum Elective Deferral $17,500 $17,500
Qualified Plan Compensation Limit $255,000 $260,000
Catch-Up Contribution Limit for all plans other than 401(k)(11) and 408(p) plans $5,500 $5,500
Catch-Up Contribution Limit for 401(k)(11) or 408(p) plans $2,500 $2,500
Highly Compensated Employee Definition $115,000 $115,000
Top Heavy Key Employee Definition $165,000 $170,000
Defined Contribution Annual Additions Limit $51,000 $52,000
Defined Benefit Annual Benefit Limit $205,000 $210,000
Social Security Taxable Wage Base $113,700 $117,000

Flexible Spending Accounts (FSAs)

Health FSA Limit $2,500 $2,500
Dependent Care Account Limits
   Married individuals, filing separately $2,500 $2,500
   Households $5,000 $5,000

Health Savings Account Limitations (HSAs)

HSA Contribution Limits
   Individual $3,250 $3,300
   Family $6,450 $6,550
   Catch-up $1,000 $1,000
HDHP Out of Pocket Maximum
   Individual $6,250 $6,350
   Family $12,500 $12,700
HDHP Minimum Annual Deductible
   Individual $1,250 $1,250
   Family $2,500 $2,500

This article was last updated on November 1, 2013


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