The IRS has announced the 2019 cost-of-living adjustments applicable to dollar limitations for retirement plans and other items.

Retirement plans are subject to annually adjusted dollar limitations by the IRS for cost-of-living increases, and are normally determined based on inflation data provided by the Bureau of Labor Statistics’ release of the Consumer Price Index. 

Effective January 1, 2019, the following limitations apply (comparison to previous years also shown):

401(k) Plan Limits

2019

2018

2017

2016

2015

401(k) Elective Deferrals

$19,000

$18,500

$18,000

$18,000

$18,000

Catch-Up Contribution Limit

$6,000

$6,000

$6,000

$6,000

$6,000

Annual Defined Contribution Limit

$56,000

$55,000

$54,000

$53,000

$53,000

Annual Compensation Limit

$280,000

$275,000

$270,000

$265,000

$265,000

Highly Compensated Employees

$125,000

$120,000

$120,000

$120,000

$120,000

Non 401(k) Related Limits

403(b) / 457 Elective Deferrals

$19,000

$18,500

$18,000

$18,000

$18,000

SIMPLE Employee Deferrals

$13,000

$12,500

$12,500

$12,500

$12,500

SIMPLE Catch-Up Deferral

$3,000

$3,000

$3,000

$3,000

$3,000

SEP Minimum Compensation

$600

$600

$600

$600

$600

SEP Annual Compensation Limit

$280,000

$275,000

$270,000

$265,000

$265,000

Defined Benefit Plan Limit

$225,000

$220,000

$215,000

$210,000

$210,000

Social Security Wage Base

$132,900

$128,400

$127,200

$118,500

$118,500

IRA Deductible Contribution Limit

$6,000

$5,500

$5,500

$5,500

$5,500

IRA Catch-Up Contribution Limit

$1,000

$1,000

$1,000

$1,000

$1,000


For assistance or questions related to applying the 2019 benefit plan limitations or any other retirement plan issues, please contact us.

Published on November 02, 2018