On November 1, the Internal Revenue Service (IRS) announced the 2019 cost-of-living adjustments to various limits affecting employee benefit plans, with very little change. The more common limits are detailed below for 2018 and 2019.
|401(k) & 403(b) Elective Deferrals||$19,000||$18,500|
|Catch-Up Contribution for participants age 50 and over||$6,000||$6,000|
|Defined Contribution Plans-IRC 415 (Including SEP and Keogh Plans)||$56,000||$55,000|
|Maximum Benefit for Defined Benefit Plans
Note: This is not the maximum contribution—it is the maximum benefit that can be funded.
|SIMPLE Retirement Plans
Catch-Up Contribution for participants
|Maximum Annual Compensation for Determining Contributions and Benefits||$280,000||$275,000|
|Compensation Limit for Key Employee Determination||$180,000||$175,000|
|Compensation Limit for Highly Compensated Determination||$125,000||$120,000|
|IRA Catch-Up Contribution||$1,000||$1,000|
A detailed listing of all of the adjusted limitations can be found here.
If you have any questions about how these limits apply to you, please contact Mark Flanagan of Aronson’s Compensation and Benefits Practice at 301.231.6257.