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California State University, Long BeachCalifornia State University, Long Beach

2014 Tax Year Update of Internal Revenue Service (IRS) Limits that Impact Retirement Plans

Limit
2013
2014
Defined Benefit Plans
The maximum dollar limitation for annual benefits under defined benefit plans under Internal Revenue Code (IRC) Section 415(b)(1)(A). EGTRRA amended this limitation fo annual benefits to the lesser of $160,000 (as adjusted for inflation) or 100% of the participant's average compensation for his high 3 years.
$205,000
$210,000
Defined Contribution Plan 415 dollar limit
The dollar limitation for annual additions under defined contribution plans under IRC Section 415(c)(l)(A). EGTRRA amended this limitation on annual additions, which is the lesser of $40,000 (as adjusted for inflation) or 100% of compensation.
$51,000
$52,000
401(k)/403(b)/Existing SARSEP Elective deferral limit
The limitation on cumulative elective deferrals to a 40 I (k), 403(b) tax deferred annuity, simplified employee pension, and SIMPLE retirement plan in a tax year, as coordinated under IRC Section 402(g)(l).
$17,500
$17,500
457 Deferral Limits
The limitation on deferrals to 457 plans under IRC Section 457(e)(15). EGTRRA amended this contributions limitation under an eligible 457 deferred compensation plan to be the lesser of 100% of includible compensation or the year's applicable dollar limit.
$17,500
$17,500
403(b) Catch-up limit
The maximum available 402(g) elective deferral limit plus the special catch-up election for employees participating in a 403(b) tax deferred annuity who have had at least 15 years of service with an educational organization, hospital, home health agency, health and welfare service agency, church or convention or association of churches. Note: The additional403(b) special catch-up of up to $3,000 per year cannot exceed cumulatively $15,000 over the lifetime of the 403(b) participant.
$20,500
$20,500
457 Catch-up limit
The special catch-up election for employees participating in an eligible 457 deferred compensation who have elected the special catch-up available in the three years retirement age. prior to the year of normal.
Note: The participant in a governmental457(b) plan may make catch-up contributions in a year equal to the greater of (a) the amount permitted under the age 50+ catch-up rule, or (b) the amount permitted under the normal retirement age catch-up rule.
$35,000
$35,000
Age 50+ Catch-up Limits
The special catch-up available under Internal Revenue Code (IRC) Section 414(v) for individuals at least 50 years old in 2013 and make eligible pre-tax contributions to 401(k), 403(b), and governmental 457 plans.
$5,500
$5,500
Age 50+ Special Catch-up Limits
The special catch-up is available for individuals who are at least 50 years old in 2013 and make eligible pre-tax contributions to a SIMPLE plan.
$2,500
$2,500
Definition of Key Employee
The compensation threshold used for determining key employees under IRS Section 416(i)(1)(A)(i).
$165,000
$170,000
Definition of Highly Compensated Employees
The compensation threshold used for determining highly compensated employees under IRC Section 414(q)(l)(B).
$115,000
$115,000
Compensation Limit - Nongovernmental plan sponsors
The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 40l(a)(l7) ).
$255,000
$260,000
Compensation Limit - Governmental plan sponsors
The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 40l(a)(l7).
$380,000
$385,000

 

Taxable Wage Base
2013
2014
Maximum amount of earnings subject to payroll tax.
$113,700
$117,000