IRS Announces 2014 Cost-Of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans
Foster Swift Business & Corporate Law Report
December 18, 2013
The IRS has announced the 2014 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below show the applicable limitations (the numbers in blue highlight changes).
Many of the limitations that apply to retirement plans remain unchanged for 2014 because the increase in the cost-of-living index has not met the statutory thresholds that trigger the adjustment. Some limitations will change, however, as noted in the following chart:
Health and Welfare Benefit Plans
Certain limitations that apply to health and welfare benefit plans remain unchanged, including the dollar limits on annual pretax contributions that an employee may make to a healthcare flexible spending account (Health FSA) and to a dependent care assistance plan (DCAP). However, many other limitations have changed, as noted in the following chart: