IRS Announces Cost-Of-Living Adjustments on Retirement Plan Limits for 2014
The IRS announced (in IR-2013-86) its annual adjustments to the various limitations placed on deferrals, contributions, and other dollar limits affecting qualified retirement plans. The elective deferral limit for defined contribution plans remains the same as 2013, at $17,500, with an over-age-50 catch-up limitation of $5,500. However, other pension plan limitations will increase for 2014. The IRS also released guidance (in Rev. Proc. 2013-35) on limits for health FSAs and qualified transportation fringe benefit programs.