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November 2, 2018

IRS Announces Changes in Benefit Plan Limitations for 2019 (article)

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The IRS has announced the 2019 cost-of-living adjustments applicable to dollar limitations for retirement plans and other items.

Retirement plans are subject to annually adjusted dollar limitations by the IRS for cost-of-living increases, and are normally determined based on inflation data provided by the Bureau of Labor Statistics’ release of the Consumer Price Index. Effective January 1, 2019, the following limitations apply (comparison to previous years also shown):

401(k) Plan Limits

2019

2018

2017

2016

2015

401(k) Elective Deferrals

$19,000

$18,500

$18,000

$18,000

$18,000

Catch-Up Contribution Limit

$6,000

$6,000

$6,000

$6,000

$6,000

Annual Defined Contribution Limit

$56,000

$55,000

$54,000

$53,000

$53,000

Annual Compensation Limit

$280,000

$275,000

$270,000

$265,000

$265,000

Highly Compensated Employees

$125,000

$120,000

$120,000

$120,000

$120,000

Non 401(k) Related Limits

 

 

 

 

 

403(b) / 457 Elective Deferrals

$19,000

$18,500

$18,000

$18,000

$18,000

SIMPLE Employee Deferrals

$13,000

$12,500

$12,500

$12,500

$12,500

SIMPLE Catch-Up Deferral

$3,000

$3,000

$3,000

$3,000

$3,000

SEP Minimum Compensation

$600

$600

$600

$600

$600

SEP Annual Compensation Limit

$280,000

$275,000

$270,000

$265,000

$265,000

Defined Benefit Plan Limit

$225,000

$220,000

$215,000

$210,000

$210,000

Social Security Wage Base

$132,900

$128,400

$127,200

$118,500

$118,500

IRA Deductible Contribution Limit

$6,000

$5,500

$5,500

$5,500

$5,500

IRA Catch-Up Contribution Limit

$1,000

$1,000

$1,000

$1,000

$1,000

 

For assistance or questions related to applying the 2019 benefit plan limitations or any other retirement plan issues, please contact us.

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Copyright © 2018, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

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