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Retirement Plans: 2018 Limits versus 2019 Limits


by Alex Baker, Senior Accountant, CPA

The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2019, and there are a lot of changes that will help your employees save more. The chart below compares retirement plan limits for 2018 versus the new limits for 2019.

Type of limitation

2018 limit

2019 limit

Elective deferrals to 401(k), 403(b) and 457(b) plans



Annual benefit for defined benefit plans



Contributions to defined contribution plans



Contributions to SIMPLEs



Contributions to IRAs



Catch-up contributions to 401(k), 403(b) and 457(b) plans



Catch-up contributions to SIMPLEs



Catch-up contributions to IRAs



Compensation limit for benefit purposes for qualified plans and SEPs



Minimum compensation for SEP coverage



Highly compensated employee threshold



Minimum income for “key employee” status for top-heavy calculation



Income subject to Social Security tax                        



HR Departments should plan to adjust their systems for next year and to inform employees about the new limits in year-end open enrollment materials. Because the IRS announced the 2019 contribution changes so close to the fall open enrollment period, many plan sponsors may need to provide addendums to benefits materials that have already been distributed. If you have any questions, please contact your VonLehman advisor.

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