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.


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