Retirement Plan Limitations for 2019
November 02, 2018
By Peter Alwardt, CPA and Barry Levine, JD
As an ongoing service to our clients, EisnerAmper is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on November 1 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2019. Many of the limits have changed from 2018, as noted below.
| Code Section | 2019 | 2018 | 2017 |
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $6,000 | 5,500 | 5,500 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | 1,000 | 1,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $600 | 600 | 600 |
| SEP Maximum Compensation – 408(k)(3)(C) | $280,000 | 275,000 | 270,000 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $280,000 | 275,000 | 270,000 |
| Elective Deferrals – 402(g)(1) | $19,000 | 18,500 | 18,000 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $6,000 | 6,000 | 6,000 |
| Defined Contribution Limits – 415(c)(1)(A) | $56,000 | 55,000 | 54,000 |
| ESOP Limit – 409(o)(1)(C) – Account Balance | $1,130,000 | 1,105,000 | 1,080,000 |
| ESOP Limit – 409(o)(1)(C) – Lengthening 5-Year Period | $225,000 | 220,000 | 215,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $125,000 | 120,000 | 120,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $225,000 | 220,000 | 215,000 |
| Key Employee – 416(i)(1)(A)(i) | $180,000 | 175,000 | 175,000 |
| 457 Elective Deferrals – 457(e)(15) | $19,000 | 18,500 | 18,000 |
| Control Employee – 1.61-21(f)(5)(i) | $110,000 | 110,000 | 105,000 |
| Control Employee – 1.61-21(f)(5)(iii) | $225,000 | 220,000 | 215,000 |
| Social Security Taxable Wage Base | $132,900 | 128,400 | 127,200 |
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