The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for retirement plans and other retirement-related items for Tax Year 2019. Good news, participants will be able to save more next year!
In general, many of the limits will increase for 2019 because the cost-of-living index met the statutory thresholds that trigger their adjustment.
|Elective Deferrals [401(k), 403(b) & 457 plans]||$19,000||$18,500|
|Simple Employee Deferral||$13,000||$12,500|
|Simple Catch-Up Contribution||$3,000||$3,000|
|Annual Contribution Limit||$56,000||$55,000|
|Annual Compensation Limit||$280,000||$275,000|
|Highly Compensated Threshold||$125,000||$120,000|
|Income Subject to Social Security||$132,900||$128,400|
|Key Employee Compensation||$180,000||$175,000|
|DB Plan Annual Benefit Limit||$225,000||$220,000|
As published by the Internal Revenue Service.
For full details on the pension plan limitations for 2019 click here.
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