What Are the 2014 Cost of Living Adjustments for Retirement and Health and Welfare Plans?

The following provides a summary of the dollar limits applicable to retirement plans, health and welfare benefits and the social security wage base for the 2014 tax year.

Retirement Plans 

The dollar limits applicable to retirement plans for the 2014 tax year are as follows:

  • Elective Deferrals:$17,500 (unchanged from 2013)
  • Catch-Up Contributions: $5,500 (unchanged from 2013)
  • Total Annual Compensation:$260,000
  • Defined Contribution Limit: $52,000
  • Highly Compensated Employee Threshold:$115,000
  • Defined Benefit Limit:$210,000

Health and Welfare Benefits 

The dollar limits applicable to health and welfare benefits for tax year 2014 are as follows:

  • Health FSAs: $2,500
  • Health Savings Accounts (HSAs) Contribution Limit:
    • Family: $6,550
    • Single: $3,300
    • Catch-Up Limit: $1,000
  • DCAP Limit:$5,000/$2,500 (if married, filing separately)
  • Qualified Transportation Benefit Monthly Limit: $250
  • Transit Pass/Vanpooling Monthly Limit: $130
  • Adoption Assistance Maximum Exclusion Amount: $13,190

Social Security Wage Base Increase

In addition to the changes set forth above, the Social Security Administration announced an increase in the wage base for Social Security taxes from $113,700 in 2013 to $117,000 in 2014.

Hamby Benefits Law, LLC recommends that you contact employee benefits counsel to assist you with 2014 cost of living adjustments (COLAs) for your retirement and health and welfare plan.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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