In October 2013, the IRS provided the cost of living adjustments for 2014. In some cases, this adjustment resulted in minor changes in total amounts to be contributed to employee 410(k) and pension plans.
The following are some of numbers to consider:
- $17,500 = 401(k), 403(b) and profit-sharing plan elective deferrals in 2014 will stay the same.
- $260,000 = The amount of employee compensation that can be considered in calculating contributions to defined contribution plans. This is an increase of $5,000 from 2013.
- $51,000 = Annual defined contribution limits from all sources will increase by $1,000 this year.
- $115,000 = The limit used in the definition of a highly compensated employee for the purpose of 401(k) nondiscrimination testing remains unchanged.
- $170,000 = Annual compensation of “key employees” in a top-heavy plan (up $5,000 from 2013)
- $5,500 = Catch-up contribution (age 50 and older during year) – stays the same
For more in-depth and detailed information, we suggest you read this article by SHRM.
Complete Payroll Processing is focused on keeping you on-top-of all of the changes that impact your day to day business. How can we help you? CPP offers many different services in payroll, HR and more. We are located right outside of Buffalo, NY. Give us a call today!
Source: http://www.shrm.org
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