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On November 1, 2018, the IRS announced cost-of-living adjustments affecting dollar limitations for retirement-related items for 2019.

The limits for 2019 are as follows:

  • The limitation under 402(g)(1) on the exclusion for elective deferrals is being increased from $18,500 to $19,000.
  • The limit for defined contribution plans under Cod Section 415 is being increased to $56,000 from $55,000 in 2018.
  • The catch-up contribution limit for employees aged 50 and overs who participate in 401(k), 403(b), most 457 plans is $6,000 which was the same limit as 2018.
  • The limit for an individual making qualified retirement contributions (IRA) is $6,000 an increase from $5,500 in 2018.
  • The limitation on the annual benefit under a defined benefit plan is increased to $225,000 from $220,000 in 2018.
  • The limitation under Code Section 408 regarding SIMPLE retirement accounts is $13,000 and increase from $12,500 in 2018.
  • The annual compensation limit that can be considered for retirement plan purposes in 2019 will be $280,000, an increase from $275,000 in 2018.
  • The limitation used in the definition of a highly compensated employee for 2019 is $125,000, for 2018 it was $120,000.

 

Source: Plan Sponsor