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|[email protected]
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