The IRS announced in Notice 2018-83 the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.
Most limits will increase for 2019, including the 401(a)(17) compensation limit, the 402(g) elective deferral limit, and the annual income threshold to qualify as a highly compensated employee. The catch-up elective deferral limit will stay at $6,000 for 2019.
A comparison of the key 2018 and 2019 retirement plan limits follows:
|
|
2018 |
2019 |
|
Maximum Elective Deferrals to 401(k), 403(b), and 457(b) Plans under § 402(g) |
$18,500 |
$19,000 |
|
Maximum Catch-up Elective Deferrals to Plans other than SIMPLE Plans (age 50 by the end of the year) |
$6,000 |
$6,000 |
|
Annual Compensation Limit under §§ 401(a)(17), 404(l) and 408(k) |
$275,000 |
$280,000 |
|
Highly Compensated Employee definition under § 414(q) for annual income |
$120,000 |
$125,000 |
|
Section 415 Limits
– Defined Contribution Plan Maximum Annual Addition
– Defined Benefit Plan Maximum Annual Benefit
|
$55,000
$220,000
|
$56,000
$225,000
|
|
Dollar amount in the definition of a “key employee” in a top-heavy plan under § 416(i) |
$175,000 |
$180,000 |
|
Maximum ESOP Account Balance Subject to 5-Year Distribution Period under § 409(o) |
$1,105,000 |
$1,130,000 |
|
ESOP Amount Used to Determine Extensions of the 5-Year Distribution Period |
$220,000 |
$225,000 |
Maximum Roth IRA Contribution (AGI Limit) under § 408A
– Married Filing Joint Return or Qualifying Widower
– All other Taxpayers (other than married filing separately) |
$189,000$120,000 |
$193,000
$122,000 |
|
Social Security Taxable Wage Base (SSA announced October 11, 2018) |
$128,400 |
$132,900 |
