IRS Announces Dollar Limits on Compensation and Benefits

Blog
November 2, 2018

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.

2019 2018
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.
$225,000 $220,000
SIMPLE Retirement Plans
Elective Deferrals

Catch-Up Contribution for participants
age 50 and over

$13,000

$3,000

$12,500

$3,000

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 Contributions $6,000 $5,500
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.