On November 1, 2018, the IRS announced cost-of-living adjustments for 2019 retirement plan contributions. For 2019, the amounts that individuals will be able to contribute to retirement plans will increase from $18,500 to $19,000. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2019:
|
Contribution Limits |
2019 |
2018 |
|
Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans |
$19,000 |
$18,500 |
|
Catch-Up Contribution Limit |
$6,000 |
$6,000 |
|
Elective Deferral Limit – SIMPLE Retirement Plan |
$13,000 |
$12,500 |
|
Catch-Up Contribution Limit – SIMPLE Retirement Plan |
$3,000 |
$3,000 |
|
Contribution Limit – IRA |
$6,000 |
$5,500 |
|
Catch-Up Contribution Limit – IRA |
$1,000 |
$1,000 |
|
Benefits and Compensation |
||
|
Defined Contribution Plan Annual Addition Limit |
$56,000 |
$55,000 |
|
Defined Benefit Plan Annual Benefit Limit |
$225,000 |
$220,000 |
|
Annual Compensation Limit |
$280,000 |
$275,000 |
|
Highly Compensated Employee Limit |
$125,000 |
$120,000 |
|
Key Employee Compensation Limit |
$180,000 |
$175,000 |
The Social Security Administration earlier announced that the Social Security Wage Base for 2019 will increase to $132,900.
If you have questions about the new pension plan limitations, please contact Brent Gambill (937-449-5539) or Edie Crump (937-449-5530).
