The Internal Revenue Code imposes dollar limitations on various compensation, benefit and contribution levels under qualified retirement plans. Today, the Internal Revenue Service announced the 2019 cost-of-living adjustments affecting dollar limitations for qualified retirement plans. The Catch-Up Contributions limit remains unchanged, but others have been increased as shown below.
| 401(k), 403(b), Profit-Sharing Plans, etc. |
|
2019 |
2018 |
2017 |
| Annual Compensation |
280,000 |
275,000 |
270,000 |
| Elective Deferrals |
19,000 |
18,500 |
18,000 |
| Catch-up Contributions |
6,000 |
6,000 |
6,000 |
| Defined Contribution Limit |
56,000 |
55,000 |
54,000 |
| ESOP Distribution Limits |
1,130,000
225,000 |
1,105,000
220,000 |
1,080,000
215,000 |
| Defined Benefit Limit |
225,000 |
220,000 |
215,000 |
| HCE Threshold |
125,000 |
120,000 |
120,000 |
| Key Employee |
180,000 |
175,000 |
175,000 |
| 457 Elective Deferrals |
19,000 |
18,500 |
18,000 |
| Taxable Wage Base |
132,900 |
128,400 |
127,200 |
For a historical chart of the applicable dollar limitations since 1986, click here.
For questions about the qualified plan limitations or any other benefits question, contact a member of Holland & Hart’s Benefits Law Group.