IRS Announces Changes in Benefit Plan Limitations for 2019
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