The change of the new year also brought some changes in retirement plans for employees. See below for a listing of limit changes happening to plans this year so that you can stay up to date on the standards.

Retirement plan limits: 2018 vs. 2019

Type of limitation

2018 limit 2019 limit
Elective deferrals to 401(k), 403(b) and 457(b) plans $18,500 $19,000
Annual benefit for defined benefit plans $220,000 $225,000
Contributions to defined contribution plans $55,000 $56,000
Contributions to SIMPLEs $12,500 $13,000
Contributions to IRAs $5,500 $6,000
Catch-up contributions to 401(k), 403(b) and 457(b) plans $6,000 $6,000
Catch-up contributions to SIMPLEs $3,000 $3,000
Catch-up contributions to IRAs $1,000 $1,000
Compensation limit for benefit purposes for qualified plans and SEPs $275,000 $280,000
Minimum compensation for SEP coverage $600 $600
Highly compensated employee threshold $120,000 $125,000
Minimum income for “key employee” status for top-heavy calculation $175,000 $180,000
Income subject to Social Security tax $128,400 $132,900

For a no-obligation discussion on the possible impact and steps you should take now, contact Meresa Morgan, our Audit Shareholder with significant experience in this area.

© 2019