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November 5, 2018

2019 Pension and Retirement Plan Limits (article)

The IRS released the 2019 cost of living adjustments (IRS Notice 2018-83) applicable to defined benefit and defined contribution plans (highlights below). 

 

2019

2018

Defined benefit plan annual limit

$225,000

$220,000

Defined contribution plan annual limit

$56,000

$55,000

Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans)

 

$19,000

 

$18,500

Maximum deferral limit for 457 plans

$19,000

$18,500

>Age 50 catch-up contribution limit to 401(k), 403(b) or 457(b) plans

$6,000

$6,000

Maximum deferral limit for SIMPLE plans

$13,000

$12,500

>Age 50 catch-up contribution limit to SIMPLE plans

$3,000

$3,000

Minimum compensation considered in determining eligibility for a SEP (simplified employee pension)

$600

$600

Threshold for highly compensated employee (HCE)

$125,000

$120,000

Key employee compensation limit for top heavy plan purposes

$180,000

$175,000

Annual compensation limit

 

$280,000

$275,000

Also see IRS News Release, 401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000.

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The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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