Read more about the current Greenbook proposals. ...
This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.
On November 1, 2018, the Internal Revenue Service announced the cost-of-living adjustments (COLA) that will take effect January 1, 2019 (IRS Notice 2018-83). These COLAs affect various contribution and deduction limits for qualified retirement plans, as well as the deductible contribution limits for traditional Individual Retirement Arrangements (IRAs).
Internal Revenue Code Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost-of-living increases. These adjustment procedures are similar to those used to adjust benefit amounts under IRC Section 215(i)(2)(A) or the Social Security Act.
Some limitations increased, while others remain unchanged from the 2018 limits. The more common limitations are summarized below, along with the applicable Code Section and/or Treasury Regulations Section (Regs).
Increased Limits
Unchanged Limits
Quick reference guide to key limitations for 2018 and 2019:
Item 2018 Limit 2019 Limit
401(k)/403(b)/457 $18,500 $19,000
Elective Deferral Limit
____________________________________________________________________
Defined Contribution Plan $55,000 $56,000
Annual Limit
____________________________________________________________________
Defined Benefit Plan $220,000 $225,000
Annual Limit
_____________________________________________________________________
Annual Compensation Limit $275,000 $280,000
_____________________________________________________________________
Catch-Up Contribution Limit $ 6,000 $ 6,000
401(k)/403(b)/457(b)/SEP
_____________________________________________________________________
Highly Compensated Employee $120,000 $125,000
Compensation Threshold
_____________________________________________________________________
Key Employee $175,000 $180,000
Compensation Threshold
______________________________________________________________________
Social Security Taxable $128,400 $132,900
Wage Base
Read more about the current Greenbook proposals. ...
Learn more about the regional and national supply chain implications of the Baltimore Key Bridge collapse. ...
We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.
Ask us
[email protected]
p:412.261.3644
f:412.261.4876
[email protected]
p:614.621.4060
f:614.621.4062
[email protected]
p:571.380.9003