Projecting next year's 401(k) plan limits
By Paula Aven Gladych
Thanks to low inflation, 401(k) plan limits are projected to stay the same next year, with a few exceptions, according to 401khelpcenter.com.
Because of the government shutdown, the IRS has not released its official guide to 401(k) limits for 2014, but 401khelpcenter.com took a stab at some estimates.
The elective deferral limit into 401(k), 403(b) and 457 plans, it said, should stay the same at $17,500, but the annual defined contribution limit from all sources could go up by $1,000 to $52,000.
Catch-up contributions limits should remain the same at $5,500, and plan limits for highly compensated employees will most likely stay at $115,000.
The annual compensation limit could go up by $5,000 in 2014 to $260,000.
For non-401(k) related limits, most should stay the same except the SEP annual contribution limit, which is expected to rise $5,000 to $260,000.
SIMPLE employee deferrals are expected to remain at $12,000; SIMPLE catch-up deferrals will stay at $2,500; and SEP minimum compensation should stay at $550.
These numbers are projections and could change once the IRS releases its 2014 plan limits, probably next month.
Originally published on BenefitsPro.com,/a>