IRS Updates Retirement Plan Limits

One of the most common compliance issues for employers and plan sponsors is failure to adhere to annual retirement plan limits. To avoid costly penalties and administratively burdensome correction procedures, plan sponsors must remain up-to-date with respect to applicable retirement plan limits. Today, November 1, 2018, the IRS announced cost-of-living adjustments affecting the 2019 dollar limitations for retirement plans and other retirement-related items.  Please note that the chart below does not include all applicable retirement plan limits, just some of the common ones.

 

401k Plan Limits
  2019 2018 2017 2016
Elective Deferrals $19,000 $18,500 $18,000 $18,000
Catch-Up Contributions $6,000 $6,000 $6,000 $6,000
Annual Defined Contribution Limit $56,000 $55,000 $54,000 $53,000
Annual Compensation Limit $280,000 $275,000 $270,000 $265,000
Highly Compensated Employee $125,000 $120,000 $120,000 $120,000
Non-401k Related Limits
Defined Benefit Plans $225,000 $220,000 $215,000 $210,000
403(b)/457 Elective Deferrals $19,000 $18,500 $18,000 $18,000
SIMPLE Employee Deferrals $13,000 $12,500 $12,500 $12,500
SIMPLE Catch-Up Contribution $3,000 $3,000 $3,000 $3,000
SEP Annual Compensation Limit $280,000 $275,000 $270,000 $265,000
Social Security Wage Base $132,900 $128,400 $127,200 $118,500

 Hall Benefits Law, LLC recommends that you consult with ERISA legal counsel to assist you with any questions you may have regarding applicable limits for your retirement plans.

 

 

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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