Projecting next year's 401(k) plan limits

By BenefitsPro


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>