11/01/2018

2019 IRS Cost of Living Adjustments Announced

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 2019 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.

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