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.

 

Related Services

Jump to Page

McDonald Hopkins uses cookies on our website to enhance user experience and analyze website traffic. Third parties may also use cookies in connection with our website for social media, advertising and analytics and other purposes. By continuing to browse our website, you agree to our use of cookies as detailed in our updated Privacy Policy and our Terms of Use.