Employee Benefits Compliance

2014 Dollar Amounts and COLAS for Benefit Plans and Taxes

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.
Tax Benefit20142013
Highly Compensated Employee (HCE) Threshold$115,000$115,000
Key Employee, Officer$170,000$165,000
Social Security Taxable Wage Base$117,000$113,700
401(k), 403(b), Profit-Sharing Plans:
   Maximum Elective Deferrals (annually)$17,500$17,500
   Catch-up Contributions     (for those age 50 and older)$5,500$5,500
   Annual Compensation$260,000$255,000
   Annual Defined Contribution Limits$52,000$51,000
Individual Retirement Accounts (IRAs):
   IRA Contribution Limit$5,500$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$3,300$3,250
   Maximum Annual Contribution – Family Coverage$6,550$6,450
  Catch-up Contribution – age 55 and over$1,000$1,000
High Deductible Health Plan (HDHP):
   Minimum Annual Deductible – Individual Coverage$1,250$1,250
   Minimum Annual Deductible – Family Coverage$2,500$2,500
   Maximum Out-of-Pocket Expenses – Individual Coverage$6,350$6,250
   Maximum Out-of-Pocket Expenses – Family Coverage$12,700$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
Adoption Credit & Exclusion from Income (may take both if enough expenses)
Adoption Tax Credit (phases out between AGI of $189,710 and $229,710)$13,190$12,970
Adoption Assistance, Maximum Annual Pre-tax Contribution through 125 Plan$13,190$12,970
Qualified Transportation Benefits:
   Parking – monthly maximum$250$245
   Vanpooling & Transit – monthly maximum$130$245
Personal Income Tax Filing Amounts:
   Dependent Exemption$3,950$3,900
   Standard Deduction, Married Filing Jointly (MFJ)$12,400$12,200
   Standard Deduction, Head of Household$9,100$8,950
   Standard Deduction,  Single or Married Filing Separately$6,200$6,100