The 2019 Retirement Plan Contribution Limits

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.