The IRS has released the following 2019 adjustments for limits on employee benefits. For the first time since 2015, the highly compensated employee (HCE) limit has increased to $125,000. Most of the limits, except catch-up deferrals to 401(k), 403(b) and 457(b) plans, also increased. Below are updated charts on 2019 limits.
Limits for 2019 – Qualified Plans
|
Limitation
|
2018
|
2019
|
|
Elective Deferrals (401(k) and 403(b) pre-tax contributions; 457(b), 402(g)(3))
|
$18,500
|
$19,000
|
|
Catch-up Contributions – 401(k), 403(b), 457(b), SARSEP plans
|
$6,000
|
$6,000
|
|
Highly Compensated Employee (HCE) – 414(q)
|
$120,000
|
$125,000
|
|
Annual Compensation Limit – 401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D)(ii)
|
$275,000
|
$280,000
|
|
Key employee – 416(i)(1)(A)(i), top heavy and 409A specified employee
|
$175,000
|
$180,000
|
|
Defined Contribution Plan total annual contributions – 415(c)
|
$55,000
|
$56,000
|
|
Defined Benefit Plan Maximum benefit – 415(b)
|
$220,000
|
$225,000
|
|
ESOP – for determining the length of the general 5 year distribution period
|
$220,000
|
$225,000
|
|
ESOP – maximum account balance subject to 5 year distribution period
|
$1,105,000
|
$1,130,000
|
Limits for 2019 – Tax Withholding Rates
Note: There have not been any changes in the tax rates for FICA, Social Security, and Medicare.
|
Limitation
|
2018
|
2019
|
|
Taxable Wage Base
|
$128,400
|
$132,900
|
Limits for 2019 – High Deductible Plans, Health Savings Account and FSAs
|
Limitation
|
2018
|
2019
|
|
High Deductible health plan – IRS limits self/family
-annual deductible –minimum
-out of pocket expenses (HSA) – maximum
|
$1,350/$2,700
$6,650/$13,300
|
$1,350/$2,700
$6,750/$13,500
|
|
HSA Contribution limit – individual/family
|
$3,450/$6,900
|
$3,500/$7,000
|
|
HSA Contribution catch-up
|
$1,000
|
$1,000
|
|
FSA (flexible spending account – health)
|
$2,650
|
$2,700 (projected)
|
|
FSA (dependent care account)
|
$5,000
|
$5,000
|
|
Out of pocket expenses (ACA) -PHSA §2707(b) maximum (in-network essential health benefits for non-grandfathered plans)
-
Self Only
-
Embedded Individual Max within Family Coverage
-
Family
|
$7,350
$7,350
$14,700
|
$7,900
$7,900
$15,800
|
Limits for 2019 – Affordable Care Act
|
Limitation
|
2018
|
2019
|
|
ACA affordability safe harbor
|
9.56%
|
9.86%
|
