1. CORRECTED ‐‐ News Flash November 5, 2013: IRS Inflation
Adjustments for 2014
The IRS has announced its 2014 annual increases for employee benefits and contributions
across a wide spectrum of tax‐qualified programs. The following table summarizes many of
the limitations as applicable to employee benefit plans. For more information, details of the
2014 inflation adjustments are outlined in Revenue Procedure 2013‐35 (available in the
November 18, 2013 edition of the Internal Revenue Bulletin) and a separate press release, IR
2013‐86.[i]
IRS Inflation Adjustments for 2014
2014
2013
Pre‐tax Dollar Limits (Retirement Plans)
401(k) Deferral Limit
$17,500
$17,500
403(b) Contributions
$17,500
$17,500
457 Contributions
$17,500
$17,500
401(k), 403(b), 457 Catch-up
Contributions (age 50+)
$5,500
$5,500
IRA
$5,500
$5,500
IRA Catch-up Contributions (age
50+)
SIMPLE Plans
$1,000
$1,000
$12,000
$12,000
SIMPLE Catch-Up
$2,500
$2,500
Highly Compensated Employee (Retirement Plans)
Annual Compensation
$115,000
$115,000
$170,000
$165,000
Key Employee (Retirement Plans)
Officer Annual Compensation
Compensation Limit (Retirement Plans)
$260,000
$255,000
$250
$245
Mass Transit Passes (monthly)
$130
$245
Bicycle Commuting (monthly)
$20
$20
Qualified Transportation
Parking (monthly)

2. FICA
Taxable Wage Base
Social Security
$117,000
$113,700
Medicare
Unlimited
Unlimited
Tax Rate
Social Security
6.20%
6.20%
Medicare
1.45% (2.35% on
wages over
$200,000 single /
$250,000 joint)
1.45% (2.35%
on wages over
$200,000 single
/ $250,000 joint)
Annual Contribution Limit (self only)
$3,300
$3,250
Annual Contribution Limit (family)
$6,550
$6,450
Catch-up Contribution
HDHP Minimum Annual Deductible
(self only)
$1,000
$1,000
$1,250
$1,250
HDHP Maximum Annual Deductible
(family)
$2,500
$2,500
HDHP Maximum Out-of-Pocket (self
only)
$6,350
$6,250
HDHP Maximum Out-of-Pocket
(family)
$12,700
$12,500
Health Savings Accounts
The IRS previously released the 2014 inflation adjusted amount for Health Savings Accounts in Revenue
Procedure 2013‐25.
[i]
The information in this publication is not intended as legal or tax advice and has been prepared
solely for informational purposes. You may wish to consult your attorney or tax adviser
regarding issues raised in this publication.