On November 1, 2018, the IRS released Notice 2018-83, containing cost-of-living adjustments affecting dollar limits for qualified retirement plans for tax year 2019. The updated dollar limits affect qualified retirement plans such as 401(k) plans, 403(b) plans, profit-sharing plans, pension plans, and most 457 plans. The IRS Notice also updated dollar limits applicable to IRAs and Roth IRAs. Certain limits remain unchanged from 2018, while others have been increased.
The following chart details relevant compensation, contribution and benefit limits for 2019. All limits are applicable for the plan year commencing in the respective year, except as stated otherwise below.
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|
LIMIT |
2019 |
2018 |
2017 |
|
401(K) DEFERRAL CONTRIBUTIONS |
$19,000
(CALENDAR YEAR LIMIT) |
$18,500
(CALENDAR YEAR LIMIT) |
$18,000
(CALENDAR YEAR LIMIT) |
|
GOVERNMENTS AND TAX-EXEMPTS DEFERRAL CONTRIBUTIONS |
$19,000
(CALENDAR YEAR LIMIT) |
$18,500
(CALENDAR YEAR LIMIT) |
$18,000
(CALENDAR YEAR LIMIT) |
|
401(K)/403(B)/GOVERNMENTAL 457(B) CATCH-UP CONTRIBUTIONS FOR PARTICIPANTS OVER AGE 50 |
$6,000
(CALENDAR YEAR LIMIT) |
$6,000
(CALENDAR YEAR LIMIT) |
$6,000
(CALENDAR YEAR LIMIT) |
|
INCLUDIBLE COMPENSATION |
$280,000 |
$275,000 |
$270,000 |
|
ANNUAL DEFINED CONTRIBUTION PLAN LIMIT (415 LIMIT) |
$56,000
(EFFECTIVE FOR LIMITATION YEARS ENDING IN 2019) |
$55,000
(EFFECTIVE FOR LIMITATION YEARS ENDING IN 2018) |
$54,000
(EFFECTIVE FOR LIMITATION YEARS ENDING IN 2017) |
|
DEFINED BENEFIT PLAN ANNUAL BENEFIT LIMITATION |
$225,000 |
$220,000 |
$215,000 |
|
FICA WAGE BASE FOR INTEGRATED PLANS |
$132,900 |
$128,400 |
$127,200 |
|
DEFINITION OF HIGHLY COMPENSATED EMPLOYEE |
FOR DETERMINING HCES IN 2019 EMPLOYEES WHO EARNED MORE THAN $125,000 IN 2018 |
FOR DETERMINING HCES IN 2018, EMPLOYEES WHO EARNED MORE THAN $120,000 IN 2017 |
FOR DETERMINING HCES IN 2017, EMPLOYEES WHO EARNED MORE THAN $120,000 IN 2016 |
|
DEFINITION OF KEY EMPLOYEE (OFFICER COMPENSATION) |
$180,000 |
$175,000 |
$175,000 |
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