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11.01.2018 Benefit and Contribution Limits for 2019 By: Marc Purintun, Elinor H. Clendenin, Brydon M. DeWitt, Nona K. Massengill, Robert B. Hamlett, Jr. & Marie D. Yascko-Rosado

The Commissioner of Internal Revenue announced the 2019 dollar limitations for benefits and contributions that apply to retirement plans. Most limits have increased while a few remained the same. The Social Security Administration increased the Social Security taxable wage base. Increases for health savings accounts were announced this summer.  The following chart provides the 2019 limits and the similar limits for 2018.

Benefit Limits Under the Internal Revenue Code and Social Security

Description

 2018 Limit

 2019
Limit

Compensation Cap under 401(a)(17)

$275,000

$280,000

Elective Deferral Limit under 402(g)(1) for 401(k) plans, SEPs, and 403(b) plans

$18,500

$19,000 

Applicable Dollar Amount for 457(b) plans

$18,500

$19,000

Catch-Up Contributions for Individuals Age 50 and Older

$6,000

$6,000 

Defined Benefit Maximum Annual Accrual

$220,000

$225,000 

Defined Contribution Maximum Annual Addition

$55,000

$56,000 

Highly Compensated Employee Compensation Limit

Key Employee in Top-Heavy Plans Compensation Limit

$120,000

$175,000

$125,000 

$180,000 

ESOP threshold for determining maximum account balance subject to 5-year distribution period

Regular Limit
Additional amount to lengthen 5-year period

 

 
$1,105,000
$220,000

 


 $1,130,000
$225,000

SEP Compensation Threshold for Participation

$600

$600 

SIMPLE IRA Maximum Pre-Tax Contribution

$12,500

$13,000 

Catch-Up Contributions for SIMPLE IRAs or SIMPLE 401(k) plans

$3,000

$3,000

IRA Maximum Deduction

$5,500

$6,000 

Social Security Taxable Wage Base

  $128,700

$132,900

Health Savings Account Maximum Contributions

Family Coverage
Single Coverage

 

$6,900
$3,400

 

 $7,000
$3,500