Back to News

2019 Cost-of-Living Adjustments For Retirement Plans

Published on

November 5, 2018

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.

Related News

View More News
News Alert
November 8, 2021

2022 Cost-of-Living Adjustments

The IRS and Social Security Administration have announced the 2022 cost-of-...

Learn More
Press Release
August 25, 2021

“Best Lawyers” Honors 30 Barley Attorneys

For Immediate Release  Lancaster, Pa. – Barley Snyder is please...

Learn More
News Alert
April 19, 2021

New DOL Guidance on Cybersecurity and Retirement Plans

$9 trillion. That’s how much the U.S. Department of Labor estimates retir...

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
Super Lawyers
Best Law Firms US News
Best Lawyers