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The 2019 Retirement Plan Contribution Limits

DWC 11/1/18

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

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


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