2019 DOLLAR LIMITATIONS
The IRS has announced the retirement plan limitations for 2019. Limitations which apply to Pension Plans (including Profit Sharing and 401(k) Plans) for the Year 2019 are:
| Annual Compensation Limit for Plan purposes | $280,000 (increased from $275,000) |
| Highly Compensated Employee Threshold | $125,000 (increased from $120,000) |
| Maximum Elective Deferrals for 401(k) | $ 19,000 (increased from $18,500) |
| Catch-Up Contributions
for employees age 50+ |
$ 6,000 (no change)
|
| Maximum Elective Deferrals for SIMPLE plans | $ 13,000 (increased from $12,500) |
| Catch-Up Contributions
for employees age 50+ |
$ 3,000 (no change) |
| IRA or Roth IRA Limit | $ 6,000 (increased from $5,500) |
| IRA or Roth IRA Catch-Up Limit | $ 1,000 (no change) |
| Social Security Taxable Wage Base | $132,900 (increased from $128,700) |
For clients with 401(k) and Profit Sharing Plans, the “maximum annual addition” to any participant for combined plans is $56,000 (increased from $55,000). Maximum annual additions do not include Catch-up Contributions.