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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