Pension Plan Limits for the Tax Year 2019
Issue Date: November 2018
On November 1, 2018, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. Highlights include the following:
|Item||IRC Reference||2019 Limit||2018 Limit|
|401(k) and 403(b) Employee Deferral Limit 1||402(g)(1)||$19,000||$18,500|
|457 Employee Deferral Limit||457(e)(15)||$19,000||$18,500|
|Catch-up Contribution 2||414(v)(2)(B)(i)||$6,000||$6,000|
|Defined Contribution Dollar Limit||415(c)(1)(A)||$56,000||$55,000|
|Defined Benefit Dollar Limit||415(b)(1)(A)||$225,000||$220,000|
|Compensation Limit 3||401(a)(17); 404(l)||$280,000||$275,000|
|Highly Compensated Employee Income Limit 4||414(q)(1)(B)||$125,000||$120,000|
|Key Employee Officer||416(i)(1)(A)(i)||$180,000||$175,000|
|Social Security Taxable Wage Base||$132,900||$128,700|
- Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit.
- Available to employees age 50 or older during the calendar year.
- All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.
- An employee who earns more than $125,000 in 2019 is an HCE in 2020.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services offered through Global Retirement Partners, LLC, a registered investment advisor. Global Retirement Partners, LLC, Frenkel Benefits – an EPIC Company, and LPL Financial are separate and non-affiliated companies.
Please be aware that this does not represent legal or tax advice and is only Frenkel’s interpretation of the laws, regulations and statutes. It is highly recommended that you seek the advice of your legal and tax professional as to the applicability of this information to your particular situation.