The 2019 Retirement Plan Contribution Limits

DWC | 11/1/18

2019 Contribution Limits_blog header image

The IRS has released the 2019 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

The good news is that both the 401(k) deferral limit and overall contribution/benefit limits increased, as did the maximum compensation limit. 

Here's a rundown of the 2019 limits:

Compensation and Benefit Limits 

  • Annual compensation limit
    • Increases from $275,000 to $280,000
  • Salary deferral limit for 401(k) and 403(b) plans
    • Increases from $18,500 to $19,000
  • Salary deferral limit for SIMPLE IRA
    • Increases from $12,500 to $13,000
  • Salary deferral limit for 457 plans
    • Increases from $18,500 to $19,000
  • Catch-up contribution limit for 401(k) plans
    • Remains unchanged at $6,000
  • Catch-up contribution limit for SIMPLE IRAs
    • Remains unchanged at $3,000 
  • Annual additions limit for defined contribution plans
    • Increases from $55,000 to $56,000
  • Annual additions limit for defined benefit plans
    • Increases from $220,000 to $225,000
  • Social Security Wage Base
    • Increases from $128,700 to $132,900

Testing Limits

  • Highly compensated employee
    • Increases from $120,000 to $125,000
  • Key employee based on officer status
    • Increases from $175,000 to $180,000
  • Key employee based on 1% owner compensation
    • Remains unchanged at $150,000

 You can find a chart of these limits from 2010 to 2019 here in the DWC Knowledge Center.

Access the Knowledge Center

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Topics: 401(k) Contribution Limits, Defined Benefit, Defined Contribution, SIMPLE, 401(k), 403(b), Plan Sponsor Requirements

The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.