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.