IRS announces new retirement plan limitations for 2019

IRS announces new retirement plan limitations for 2019

On Nov. 1, 2018, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2019 tax year. Changes to the limits are based upon the Social Security cost-of-living increases. Unlike in some recent tax years, most of the applicable pension and retirement limitations will increase for the 2019 tax year.  

Below are the new 2019 plan limitations: 

 

 

  2019  2018
401(k),403(b) and 457(b) deferral limits     $19,000  $18,500
401(k) and 403(b) catch-up deferral limits     $6,000 $6,000
Annual limitation on compensation  $280,000 $275,000
Defined contribution limitation     $56,000 $55,000
Defined benefit limitation  $225,000 $220,000
Highly compensated employee compensation threshold       $125,000 $120,000
Key employee compensation - officer threshold  $180,000 $175,000
SIMPLE deduction $13,000     $12,500
SIMPLE catch-up contribution  $3,000 $3,000
IRA contribution limit   $6,000  $5,500
IRA catch-up contribution limit  $1,000  $1,000
Social Security wage base  $132,900  $128,400


For more information or if you have questions, please contact one of the attorneys listed below.

 

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