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.
