Updated 2014 Cost of Living Adjustments for Your Retirement Plan Administration
The Internal Revenue Service has announced its annual cost of living adjustments for 2014. For qualified retirement plans, certain plan limits have changed from the 2013 limits because an increase in the cost-of-living index triggered an adjustment. For example, the overall defined contribution annual limitation increased to $52,000 (up from $51,000). However, some limits, such as the elective deferral limit ($17,500) and the catch-up contribution limit ($5,500), have not changed.
To assist plan sponsors, Ice Miller's updated Cost of Living Adjustment (COLA) chart lists the cost of living adjustments to retirement plan limitations for the years 2001 through 2014. We have included the adjusted limits, as well as Pension Benefit Guaranty Corporation guarantees, federal income tax amounts and Social Security and Medicare contribution rates and wage bases for the past 14 years as a handy reference tool. If you would like a laminated copy of the chart, please e-mail your name and address to firstname.lastname@example.org
To discuss the impact of these cost of living adjustments, please contact the Ice Miller Employee Benefits Group.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.