The government shutdown in the first half of October delayed the September CPI release by two weeks. Inflation was very low in the last 12 months. According to the government, the Consumer Price Index for Urban Consumers (CPI-U) in September 2013 was 1.2% higher than the same measure a year ago in September 2012.
This number made it possible to calculate the 2014 retirement plan contribution limits. Because of low inflation and how the limits can only increase by a minimum increment, 401k and IRA contribution limits for 2014 will stay the same as in 2013 for the most part.
401k/403b/457 Elective Deferral Limit
401k/403b/457 contribution limit will stay the same at $17,500 in 2014.
If you are self-employed, the total employer plus employee contributions to all defined contribution plans by the same employer will go up by $1,000 from $51,000 to $52,000 in 2014.
SIMPLE 401k and SIMPLE IRA Contribution Limit
SIMPLE 401k and SIMPLE IRA plans have a lower limit than 401k plans. It will also stay the same at $12,000 in 2014.
Traditional and Roth IRA Contribution Limit
Traditional and Roth IRA contribution limit will also stay the same at $5,500 in 2014.
All Together
| 2013 | 2014 | Increase | |
| Limit on employee contributions to 401k, 403b, or 457 plan | $17,500 | $17,500 | None |
| Limit on age 50+ catchup contributions to 401k, 403b, or 457 plan | $5,500 | $5,500 | None |
| Traditional and Roth IRA contribution limit | $5,500 | $5,500 | None |
| Traditional and Roth IRA age 50+ catchup contribution limit | $1,000 | $1,000 | None |
| SIMPLE 401k or SIMPLE IRA contributions limit | $12,000 | $12,000 | None |
| SIMPLE 401k or SIMPLE IRA age 50+ catchup contributions limit | $2,500 | $2,500 | None |
| Maximum annual additions to all defined contribution plans by the same employer | $51,000 | $52,000 | $1,000 |
| Highly Compensated Employee definition | $115,000 | $115,000 | None |
[Update on Oct. 31, 2013]: The IRS issued IR-2013-86 Pension Limitations 2014, which confirmed all the numbers I calculated on my own long ago.
[Photo credit: Flickr user SalFalko]
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