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2014 Cost of Living Adjustments from the IRS

by | Nov 7, 2013 | Tax and Accounting Desk

The IRS has announced more cost-of-living adjustments for tax year 2014.

  • 401(k) and 403(b) elective deferrals remain unchanged at $17,500.
  • The catch-up contributions to 401(k), 403(b), and 457(b) for individuals age 50 or over remains at $5,500.
  • Transportation fringes  for 2014 are: $250/month for “qualified parking” and $130/month for “transportation in a commuter highway vehicle and any transit pass.”
  • FSA deferrals for plan years beginning in 2014, the limitation under §125(i) for contributions to health flexible spending arrangements is $2,500.

For complete list of adjustments see IR-2013-86, 10-31-13 and http://www.irs.gov/Retirement-Plans/COLA-Increases-for-Dollar-Limitations-on-Benefits-and-Contributions.

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