Today the IRS announced in Notice 2018-83 the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.Most limits will increase for 2019, including the 401(a)(17) compensation limit, the 402(g) elective deferral limit, and the annual income threshold to qualify as a highly compensated employee. The catch-up elective deferral limit will stay at $6,000 for 2019. A comparison of the key 2018 and 2019 retirement plan limits follows:
|Maximum Elective Deferrals to 401(k), 403(b), and 457(b) Plans under § 402(g)||$18,500||$19,000|
|Maximum Catch-up Elective Deferrals to Plans other than SIMPLE Plans (age 50 by the end of the year)||$6,000||$6,000|
|Annual Compensation Limit under §§ 401(a)(17), 404(l) and 408(k)||$275,000||$280,000|
|Highly Compensated Employee definition under § 414(q) for annual income||$120,000||$125,000|
|Section 415 Limits - Defined Contribution Plan Maximum Annual Addition - Defined Benefit Plan Maximum Annual Benefit||$55,000 $220,000||$56,000 $225,000|
|Dollar amount in the definition of a “key employee” in a top-heavy plan under § 416(i)||$175,000||$180,000|
|Maximum ESOP Account Balance Subject to 5-Year Distribution Period under § 409(o)||$1,105,000||$1,130,000|
|ESOP Amount Used to Determine Extensions of the 5-Year Distribution Period||$220,000||$225,000|
|Maximum Roth IRA Contribution (AGI Limit) under § 408A - Married Filing Joint Return or Qualifying Widower - All other Taxpayers (other than married filing separately)||$189,000$120,000||$193,000 $122,000|
|Social Security Taxable Wage Base (SSA announced October 11, 2018)||$128,400||$132,900|
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