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Retirement Plan Limitations for 2019

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

 

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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.

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.