Employee Benefits Compliance, Taxes, Fees & Penalties

2013 COLAS and Dollar Limits

The IRS and Social Security Administration each year announce the cost-of-living adjustments affecting  tax and employee benefits dollar amounts for the upcoming calendar year.   Some of the highlights are listed below.  For additional information, see the links at the end of this table.
Tax Benefit20122013
Highly Compensated Employee (HCE) Threshold$115,000$115,000
Key Employee, Officer$165,000$165,000
Social Security Taxable Wage Base  *  $110,100$113,700
401(k), 403(b), Profit-Sharing Plans:
   Maximum Elective Deferrals (annually)$17,000$17,500
   Catch-up Contributions     (for those age 50 and older)$5,500$5,500
   Annual Compensation $250,000$255,000
   Annual Defined Contribution Limits$50,000$51,000
Individual Retirement Accounts (IRAs):
   IRA Contribution Limit$5,000$5,500
   IRA Catch-up Contributions (age 50 and older)$1,000$1,000
Health Savings Accounts (H.S.A.s):
   Maximum Annual Contribution – Individual Coverage$3,100$3,250
   Maximum Annual Contribution – Family Coverage$6,250$6,450
  Catch-up Contribution – age 55 and over$1,000same
High Deductible Health Plan (HDHP):
   Minimum Annual Deductible – Individual Coverage$1,200$1,250
   Minimum Annual Deductible – Family Coverage$2,400$2,500
   Maximum Out-of-Pocket Expenses – Individual Coverage$6,050$6,250
   Maximum Out-of-Pocket Expenses – Family Coverage$12,100$12,500
Dependent Care Assistance Plan (DCAP) Maximum Annual Pre-tax Contribution through 125 Plan  
   For a married couple filing  a joint return or a single parent filing as “House of Household”$5,000$5,000
   For a married couple filing separate returns$2,500$2,500
  * Through 12/31/12 OASDI rate for workers is 4.2% of amount but employers pay 6.2%.  In 2013 an additional 0.9% tax applies to earned & self-employment income > $200,000 ($250,000 if married filing jointly)
Social Security 2012 Fact Sheet: http://www.socialsecurity.gov/pressoffice/factsheets/colafacts2013.pdf