Alert! Changes to IRA and Retirement Plan Limits for 2014
7 November 2013
Many IRA and retirement plan limits are indexed for inflation each year. On October 31, 2013, the IRS issued the inflation-adjusted numbers for 2014. While many limits remain the same, several important limits have increased.
For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans remains at $17,500 in 2014 (the catch-up limit remains unchanged at $5,500). The maximum IRA contribution remains at $5,500 in 2014 (and the catch-up limit remains unchanged at $1,000). However, the phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2014. In addition, the maximum amount that can be contributed to a defined contribution plan has increased from $51,000 to $52,000 for 2014.
Our Alert summarizes these changes.