The Internal Revenue Service (“IRS”) announced on November 1, 2018, the following dollar limits applicable to tax-qualified plans for 2019:
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The limit on the maximum amount of elective contributions that a person may make to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan is increased from $18,500 to $19,000.
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The limit on “catch-up contributions” to a §401(k) plan, a §403(b) tax-sheltered annuity, or a §457(b) eligible deferred compensation plan for persons age 50 and older remains unchanged at $6,000.
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The dollar limit on the maximum permissible allocation under a defined contribution plan is increased from $55,000 to $56,000.
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The maximum annual benefit under a defined benefit plan is increased from $220,000 to $225,000.
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The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan is increased from $275,000 to $280,000.
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The dollar amount used to identify “highly compensated employees” is increased from $120,000 to $125,000.
Additional information regarding benefit plan dollar limits can be obtained in IRS Notice 2018-83.
