The IRS announced cost-of living adjustments affecting dollar limitations for pension plans and other retirement related limitations for 2019, see Notice 2018-83. Most limits experienced modest increases with a few remaining at the same level. Notably, the IRA limit is higher by $500, now at $6,000, the last increase to IRA amounts was in 2013. Salary deferral contribution amounts to 401(k), 403(b), and 457 plans are also up to $19,000.
Below is a summary of the announced adjustments*
| Limitations | 2019 | 2018 |
| Elective deferral limit for 401(k), Roth 401(k), 403(b), Roth 403(b), & 457 Plans | $19,000 | $18,500 |
| Catch-up contribution limit for 401(k), Roth 401(k), 403(b), Roth 403(b), & 457 Plans | $6,000 | $6,000 |
| Elective deferral limit for SIMPLE IRA Plans | $13,000 | $12,500 |
| Catch-up contribution limit for SIMPLE IRA Plans | $3,000 | $3,000 |
| Annual limit for defined contribution plans | $56,000 | $55,000 |
| Annual limit to SEP IRA Plans | $56,000 | $55,000 |
| Maximum plan compensation for retirement plan purposes | $280,000 | $275,000 |
| Annual benefit limit for defined benefit plans | $225,000 | $220,000 |
| Threshold amount for definition of a highly compensated employee | $125,000 | $120,000 |
| Threshold amount for definition of a key employee in top heavy plans | $180,000 | $175,000 |
| SEP IRA compensation threshold for eligibility | $600 | $600 |
| Social Security Taxable Wage Base | $132,900 | $128,400 |
| IRA or Roth IRA contribution limit | $6,000 | $5,500 |
| Catch-up contribution limit for IRA or Roth IRA | $1,000 | $1,000 |
| IRA Deduction phase-out limit for active plan participants starts at: | ||
| Single | $64,000 | $63,000 |
| Married Filing Jointly | $103,000 | $101,000 |
| Married Filing Jointly and one spouse is covered by a plan | $193,000 | $189,000 |
| Roth IRA contribution phase-out limit starts at: | ||
| Single | $122,000 | $120,000 |
| Married Filing Jointly | $193,000 | $189,000 |
*This summary is designed to provide an overview of the dollar limitations for retirement plans applicable in 2019 and is not comprehensive. It is intended for general information only and is believed to be accurate and reliable as of posting date but may be subject to changes. Benefits Functional Fiduciaries Inc. does not provide investment, tax, or legal advice. Individuals should seek services from the appropriate tax and legal professionals as to how this information will apply to them under their individual circumstances.
