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How Do 2019 Retirement Plan Limits Compare?

12/11/18

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

$18,500

$19,000

Annual benefit for defined benefit plans

$220,000

$225,000

Contributions to defined contribution plans

$55,000

$56,000

Contributions to SIMPLEs

$12,500

$13,000

Contributions to IRAs

$5,500

$6,000

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

$6,000

$6,000

Catch-up contributions to SIMPLEs

$3,000

$3,000

Catch-up contributions to IRAs

$1,000

$1,000

Compensation limit for benefit purposes for qualified plans and SEPs

$275,000

$280,000

Minimum compensation for SEP coverage

$600

$600

Highly compensated employee threshold

$120,000

$125,000

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

$175,000

$180,000

Income subject to Social Security tax                        

$128,400

$132,900

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.