The IRS has announced the 2019 cost-of-living adjustments for various retirement plan dollar limits. The 2019 limits are as follows:
| Limit | 2017 | 2018 | 2019 |
| Section 402(g) limit for 401(k) pre-tax contributions | $18,000 | $18,500 | $19,000 |
| Section 414(v) catch-up contribution limit | $6,000 | $6,000 | $6,000 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes | $270,000 | $275,000 | $280,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit | 6.67% | 6.73% | 6.79% |
| Section 415 limit on annual additions to a defined contribution plan | $54,000 | $55,000 | $56,000 |
| Section 415 limit on annual benefits under a defined benefit plan | $215,000 | $220,000 | $225,000 |
| Compensation threshold for defining "Highly Compensated Employees" |
$120,000 (in 2016) |
$120,000 (in 2017) |
$120,0001 (in 2018) |
| Compensation threshold for officers to be "Key Employees"2 | $175,000 | $175,000 | $180,000 |
| Social Security (OASDI) Wage Base | $127,200 | $128,400 | $132,900 |
Footnotes
1 An employee with compensation exceeding $125,000 in 2019 will be an HCE in 2020.
2 5% owners and 1% owners with compensation exceeding $150,000 are also key employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
