IRS Announces 2019 Retirement Plan Limits

IRS Announces 2019 Retirement Plan Limits

The Internal Revenue Service has announced cost-of-living adjustments for 2019, which affect dollar limitations for retirement plans and other retirement-related values. Almost all limits increased from 2018 to 2019. 

The 2019 limits are as follows:

401(k) Deferral Limit – Increase from $18,500 to $19,000

Catch-up Deferral Limit – Remains at $6,000

Defined Contribution Plan Maximum Annual Additions – Increase from $55,000 to $56,000 (or $62,000 with catch-up)

Defined Benefit Plan Maximum Annual Benefit – Increase from $220,000 to $225,000

Annual Compensation Limit – Increase from $275,000 to $280,000

HCE Compensation Limit – Increase from $120,000 to $125,000

Key Employee Limit – Increase from $175,000 to $180,000

Social Security Wage Base – Increase from $128,400 to $132,900