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Effects of IRS 2019 Cost of Living Adjustments on Your Retirement Plan

Earlier this month, the IRS announced its cost of living adjustments to retirement plan limitations that will go into effect on January 1, 2019. The adjustments include increases to the contribution limits for most plans and an increase in the annual compensation used for qualified plan purposes. We have compiled a list of the limits as follows: 

 2019  2018
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation 280,000 275,000
Elective Deferrals 19,000 18,500
Defined Contribution Limits 56,000 55,000
Catch-up Contributions 6,000 6,000
IRAs
IRA Contribution Limit $6,000 $5,500
IRA Catch-Up Contributions 1,000 1,000
SIMPLE Plans
SIMPLE Maximum Contributions 13,000 12,500
Catch-up Contributions 3,000 3,000
SEP
SEP Maximum Compensation 280,000 275,000
SEP Maximum Contribution 56,000 55,000
SEP Minimum Compensation 600 600
ESOP
Account Balance 1,130,000 1,105,000
5-year Distribution Factor 225,000 220,000
Other Limits
HCE Threshold 125,000 120,000
Defined Benefit Limits 225,000 220,000
Key Employee 180,000 175,000
457 Elective Deferrals 19,000 18,500

Author: John Kramer |  jkramer@withum.com 


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