2019 Cost-of-Living Adjustments For Retirement Plans

News & Events

2019 Cost-of-Living Adjustments For Retirement Plans

Alert Date: November 5, 2018

By: Mark A. Smith
Related Practice Area: Employee Benefits

The IRS and Social Security Administration have announced the 2019 cost-of-living adjustments for retirement plans. Here are some of the more significant limitations affecting employee benefit plans:

  • The maximum amount that may be deferred under 401(k), 403(b) and 457(b) plans, not including catch-up deferrals such as the 402(g) limit, is increased from $18,500 to $19,000. 
  • The Internal Revenue Code section 415 maximum annual benefit under a defined benefit plan will increase by $5,000 to $225,000.
  • The IRC section 415 maximum annual additions under a defined contribution plan will increase by $1,000 to $56,000, subject to the overall limitation of 100 percent of compensation.
  • The highly compensated employee threshold dollar limit increases by $5,000 to $125,000.
  • The maximum amount of compensation that may be taken into account for benefit purposes under a qualified plan will increase from the current limit of $275,000 to $280,000.
  • The limit on catch-up deferrals to 401(k), 403(b) and 457 plans remain unchanged at $6,000. Catch-up deferrals are only available to plan participants who have attained age 50 by the end of the plan year and whose deferrals are limited due to plan or regulatory limitations.
  • The Social Security taxable wage base is increased by $4,500 to $132,900.  

If you have questions about any of these adjustments, please contact me or anyone in the Barley Snyder Employee Benefits Group.