Benefits Notes |

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Benefits Notes Post

IRS Annual Limits on Qualified Plans for 2019

IRS Annual Limits on Qualified Plans for 2019 By Jeffrey P. Cairns

The Internal Revenue Service has released the 2019 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The Notice providing the cost-of-living adjustments is available here 2018-83. The Service announced the Health Savings Account Limits in May, 2018.

The following chart summarizes the 2019 limits for benefit plans. The 2018 limits are provided for reference.

The Social Security Administration changed its cost-of-living adjustments for 2019 in October, 2018. The chart also reflects the change to the taxable wage base.

 

2018 2019
Elective Deferral Limit 401(k), 403(b), 457(b) $18,500 $19,000
Catch-up Limit (age 50+) $6,000 $6,000
Defined Benefit Limit $220,000 $225,000
Defined Contribution Limit $55,000 $56,000
Dollar Limit – Highly Compensated Employees $120,000 $125,000
Officer – Key Employee $175,000 $180,000
Annual Compensation Limit $275,000 $280,000
SEP Eligibility Compensation Limit $600 $600
SIMPLE Deferral Limit $12,500 $13,000
SIMPLE Catch-up Limit (age 50+) $3,000 $3,000
Social Security Taxable Wage Base $128,400 $132,900
ESOP 5 Year Distribution Extension Account Minimum $1,105,000 $1,130,000
Additional Amount for 1-Year Extension $220,000 $225,000
HSA (Self/Family) Maximum Annual Contribution $3,450/$6,900 $3,500/$7,000
HDHP Minimum Deductible Limits $1,350/$2,700 $1,350/$2,700
Out-of-pocket Expense Annual Maximum $6,650/$13,300 $6,750/$13,500
Medical FSA $2,650 *

*Waiting for final 2019 number from IRS but expected to be $2,700