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Department of Employee Trust Funds
Revised November 18, 2013

 

IRS Benefits and Compensation Limitations

The Internal Revenue Service recently announced adjustments to the dollar limitations for pension plans. Some limitations remain unchanged, but a number affecting WRS participants have been adjusted.

IRS Benefits and Compensation Limitations
Provision Internal
Revenue Code Citation
2012 2013 2014
Limit on 457(e)(15) Deferrals § 457(e)(15) $17,000 $17,500 $17,500
Catch-up Contribution Limit (for those over 50 years of age) 414
(v)(2)(B)(i)
$5,500 $5,500 $5,500
Benefits Limit –
The maximum annual benefit that can be paid to a participant.
§ 415(b)(1)(A) $200,000 $205,000 $210,000
Limit on Additional Contributions § 415(c)(1)(A) $50,000 $51,000 $52,000
Limit Used in the Definition of a Highly Compensated Employee § 414(q)(1)(B) $115,000 $115,000 $115,000
Limitation on Compensation –
The maximum amount of annual compensation on which retirement contributions may be based (for post 1/1/96 hires).*
§ 401(a)(17) $250,000 $255,000 $260,000
Maximum Amount of Earnings Subject to Social Security -- $110,000 $113,700 $117,000

* Does not apply to certain post January 1, 1996 hires who were previously enrolled in the WRS.



 

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