Coolidge Wall Co., L.P.A.
Phone : 937-608-9464 | Toll Free : 877-422-0702

IRS Announces 2019 Pension Plan Limitations

On November 1, 2018, the IRS announced cost-of-living adjustments for 2019 retirement plan contributions. For 2019, the amounts that individuals will be able to contribute to retirement plans will increase from $18,500 to $19,000. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2019:

Contribution Limits

2019

2018

Elective Deferral Limit - 401(k), 403(b) and 457(b) Plans

$19,000

$18,500

Catch-Up Contribution Limit

$6,000

$6,000

Elective Deferral Limit - SIMPLE Retirement Plan

$13,000

$12,500

Catch-Up Contribution Limit - SIMPLE Retirement Plan

$3,000

$3,000

Contribution Limit - IRA

$6,000

$5,500

Catch-Up Contribution Limit - IRA

$1,000

$1,000

Benefits and Compensation

Defined Contribution Plan Annual Addition Limit

$56,000

$55,000

Defined Benefit Plan Annual Benefit Limit

$225,000

$220,000

Annual Compensation Limit

$280,000

$275,000

Highly Compensated Employee Limit

$125,000

$120,000

Key Employee Compensation Limit

$180,000

$175,000

The Social Security Administration earlier announced that the Social Security Wage Base for 2019 will increase to $132,900.

If you have questions about the new pension plan limitations, please contact Brent Gambill (937-449-5539) or Edie Crump (937-449-5530).

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