Highly Compensated Employee Sec. 414(q)(1)(B). Highly compensated employee is one who, during the prior year, was either (a) a 5% owner; or (b) had compensation above the listed figure. The dollar limitation under Sec. 416(i)(1)(A)(i) concerning definition of Key Employee in top-heavy plan for 2014 is $170,000. $115,000 $115,000 $115,000 (Indexed in $5,000 increments) Exclusion for Elective Deferrals for a 401(k), 403(b), SARSEP or Thrift Savings Plan Sec. 402(g). The indicated figure is the maximum salary reduction a participant can make. $17,000 $17,500 $17,500 (Indexed in $500 increments) IMPORTANT COLAs and SCHEDULED INCREASES 2012 2013 2014 Maximum Elective Deferrals for a SIMPLE Plan Sec. 408(p)(2)(E). This is the maximum salary reduction a participant can take under a SIMPLE IRA or SIMPLE 401(k). $11,500 $12,000 $12,000 (Indexed in $500 increments) Maximum 457 Salary Reduction Sec. 457(e)(15). Maximum deferral to nonqualified plans of state and local government and tax exempt orgs. The limit is twice the otherwise applicable dollar limit in the three years before retirement. $17,000 $17,500 $17,500 (Indexed in $500 increments) Part-time Employee Floor for a SEP Sec. 408(k)(2)(C).Employees who earn over the indicated limits must be included in a SEP if they are otherwise eligible. $550 $550 $550 (Indexed in $50 increments) ESOP Maximum Amount Sec. 409(o)(1)(C)(ii). Determining Lengthening of 5-Year Distribution Period. $200,000/ $1,015,000 $205,000/ $1,035,000 $210,000/ $1,050,000 (Indexed for $5,000 increments)
Deductible, Nondeductible, and Roth IRA Contribution Limits Sec. 219(b)(1)(A).This is the limit on how much can be contributed to an IRA. $5,000 $5,500 $5,500 (Indexed in $500 increments) IRA Catch-Up Provision for Individuals 50 or Older by year end Sec. 219(a)(5)(B).This is the amount that can be contributed for those 50 and older by year end. The catch up is $1,000 in 2013. The listed number is the total amount that can be contributed. $6,000 $6,500 $6,500 (Indexed in $500 increments) 2014 IRA Phaseout Limits for Active Participants in a Qualified Plan (Modified Adjusted Gross Income (MAGI)) Contributions to Traditional IRAs: Sec. 219(g)(3)(B) Filing Status Phaseout of Deduction 2012 2013 2014 Married filing jointly Begins $92,000 $95,000 $96,000 Ends (i.e. no deduction) $112,000 $115,000 $116,000 Single & HOH Begins $58,000 $59,000 $60,000 Ends $68,000 $69,000 $70,000 Married Filing Separately Begins $0 $0 $0 Ends $10,000 $10,000 $10,000 Nonworking spouse Begins $173,000 $178,000 $181,000 Ends $183,000 $188,000 $191,000 What this means: If a single-filing taxpayer participates in a qualified plan at work and earns less than $60,000 in 2014, he may use the full $5,500 IRA deduction. Once he earns more than $60,000, his deduction is phased out until he reaches $70,000, at which point he would no longer be entitled to an IRA deduction. Contributions to Roth IRAs: Sec. 408A(c)(3)
2014 SOCIAL SECURITY BENEFITS Maximum Monthly Benefit (at full retirement age) $2,642 Per Month (Age 66) Retirement Earnings Test Exempt Amount (under FRA): One dollar in benefits will be withheld for every two dollars in earnings above the limit prior to reaching FRA. $15,480 Per Year ($1,290 Per Month) Retirement Earnings Test Exempt Amount for months prior to FRA: One dollar in benefits will be withheld for every three dollars in earnings above the limit, but only for earnings before the month the taxpayer reaches FRA. There is no annual earnings limit for those who continue to work after reaching their FRA. $41,400 Per Year ($3,450 Per Month) Substantial Gainful Activity Threshold Limits Non-Blind $1,070 Per Month Blind $1,800 Per Month SSI Federal Payment Amounts Individuals $721 Per Month Couples $1,082 Per Month SSI Resources Limits Individual $2,000 Couple $3,000 SSI Student Exclusion Monthly $1,750 Annually $7,060 Trial Work Period (TWP) $770 Per Month Full Retirement Age (FRA): For retirees born in between 1943 and 1954, FRA is 66. For those born after 1954 but before 1960, FRA gradually increases to age 67. For those born in 1960 and later, FRA is 67. Substantial Gainful Activity: To be eligible for disability benefits, a person must be unable to engage in substantial gainful activity, meaning he may not earn more than a certain monthly amount. 2014 INCOME TAX RATE SCHEDULES CORPORATE INCOME TAX RATES