Resource Articles Back to Article List

2014 Pension Limits and Thresholds

A few updates regarding your qualified retirement plan, including 2014 limits and thresholds.

Pension Limits and Thresholds

The IRS has issued calendar year 2014 dollar pension limits and thresholds as follows:

  • Maximum Annual Addition (Defined Contribution): $52,000
  • 401(k), 403(b) and 457 Elective Deferrals: $17,500
  • 401(k), 403(b), and 457 Age 50 and Older Catch-up Contributions: $5,500
  • Annual Compensation Limit: $260,000
  • Highly Compensated Employee Limitation: $115,000
  • SIMPLE Deferral Limit: $12,000
  • SIMPLE Age 50 and Older Catch-up Contributions: $2,500
  • S.S. Taxable Wage Base: $117,000

Click here for a comparison of 2011 through 2014.

Rehired Employees
Just a quick note on the general rule when you rehire employees – If the rehired employee had already satisfied the minimum age and service requirements of your plan and had previously entered, then the rehire is eligible to enter the plan upon date of rehire (this includes deferrals). This is a general rule. Please review your plan document for the specifics on this situation for your plan. Call us with any questions.

Worth Repeating—IRS Top Ten 401(k) Errors

  • Plan document failure
  • Failure to follow terms of the document
  • Failure to use plan definition of compensation
  • Failure to follow plan’s matching provisions
  • Failure to satisfy ADP/ACP tests
  • Failure to include eligible employees
  • Failure to apply 402(g) limits to deferrals
  • Failure to timely deposit deferrals
  • Failure to follow loan rules
  • Failure to follow plan hardship provisions

Due to the complexity of qualified retirement plans, unfortunately, there are many opportunities for unintended errors. If you have any questions on the operation of your plan, please contact Diane Thompson CPA, CEBS or Colleen K. DeBolt, ERPA at 866.888.5226.