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:| 2018 | 2019 | |
| 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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