- by Christopher Egoville, PCS
- PCS, Compliance
The Internal Revenue Service (IRS) has announced its 2019 cost-of-living adjustments (COLAs) for retirement plans. While some retirement plan limitations will stay the same for 2019, many key limitations will increase next year, including the participant contribution limit.
Some of the limits include:
The elective deferral limit (i.e., participant contribution limit) for 401(k), 403(b) and 457(b) plans increases to $19,000 for 2019. The catch-up contribution limit remains unchanged at $6,000.
The compensation limit (i.e., the maximum amount of compensation that can be considered for plan purposes) increases to $280,000 for 2019.
The annual addition contribution limit (i.e., the maximum amount of combined employee and employer contributions that can be contributed to a participant’s account) for individuals in defined contribution plans, such as 401(k) and 403(b)plans, increases to $56,000 for 2019. This amount does not include catch-up contributions.
The compensation threshold for determining highly compensated employees for purposes of nondiscrimination testing increases to $125,000 for 2019.
The compensation threshold for determining officer key employees for purposes of top heavy testing increases to $180,000 for 2019.
The Social Security Wage Base increases to $132,900 for 2019.
If you would like to see all of the cost of living adjustments, please click here.