IRS Annual Limits on Qualified Plans for 2019 By Jeffrey P. Cairns
The Internal Revenue Service has released the 2019 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The Notice providing the cost-of-living adjustments is available here 2018-83. The Service announced the Health Savings Account Limits in May, 2018.
The following chart summarizes the 2019 limits for benefit plans. The 2018 limits are provided for reference.
The Social Security Administration changed its cost-of-living adjustments for 2019 in October, 2018. The chart also reflects the change to the taxable wage base.
|
|
2018 |
2019 |
|
Elective Deferral Limit 401(k), 403(b), 457(b) |
$18,500 |
$19,000 |
|
Catch-up Limit (age 50+) |
$6,000 |
$6,000 |
|
Defined Benefit Limit |
$220,000 |
$225,000 |
|
Defined Contribution Limit |
$55,000 |
$56,000 |
|
Dollar Limit – Highly Compensated Employees |
$120,000 |
$125,000 |
|
Officer – Key Employee |
$175,000 |
$180,000 |
|
Annual Compensation Limit |
$275,000 |
$280,000 |
|
SEP Eligibility Compensation Limit |
$600 |
$600 |
|
SIMPLE Deferral Limit |
$12,500 |
$13,000 |
|
SIMPLE Catch-up Limit (age 50+) |
$3,000 |
$3,000 |
|
Social Security Taxable Wage Base |
$128,400 |
$132,900 |
|
ESOP 5 Year Distribution Extension Account Minimum |
$1,105,000 |
$1,130,000 |
|
Additional Amount for 1-Year Extension |
$220,000 |
$225,000 |
|
HSA (Self/Family) Maximum Annual Contribution |
$3,450/$6,900 |
$3,500/$7,000 |
|
HDHP Minimum Deductible Limits |
$1,350/$2,700 |
$1,350/$2,700 |
|
Out-of-pocket Expense Annual Maximum |
$6,650/$13,300 |
$6,750/$13,500 |
|
Medical FSA |
$2,650 |
* |
*Waiting for final 2019 number from IRS but expect to be $2,700
