Retirement Plan Limitations for 2019

November 02, 2018

By Peter Alwardt, CPA and Barry Levine, JD

As an ongoing service to our clients, EisnerAmper LLP 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

FOR RELATED CONTENT, PLEASE SEE:

About Peter Alwardt

Peter Alwardt is a Tax Partner specializing in employee benefits, tax and ERISA issues for domestic and international clients. He is a member of the American Institute of Certified Public Accountants and NY State Society of CPAs.

About Barry Levine

Barry Levine is a Tax Director specializing in employee benefits, tax and ERISA issues. He has written articles on employee benefit legal issues for various legal and employee benefits professional publications.

Have Questions or Comments?

If you have any questions, we'd like to hear from you.