News

IRS Announces 2019 Pension and Related Limitations

Submitted by Firm:
Bond, Schoeneck & King, PLLC
Firm Contacts:
Louis P. DiLorenzo, Thomas G. Eron
Article Type:
Legal Update
Share:

The Internal Revenue Service recently announced the dollar limitations for pension plans and other items beginning January 1, 2019. Some of the limits are listed below.
 

LIMITATION
 
2018 AMOUNT 2019 AMOUNT
Maximum Annual Compensation taken into account for determining benefits or contributions to a qualified plan
 
$275,000 $280,000
Basic Elective Deferral Limitation for 401(k), 403(b) and 457(b) Plans1
 
 $18,500 $19,000
Catch-up Contribution Limit for Persons Age 50 and older in 401(k), 403(b) or SARSEP Plans
 
$6,000 $6,000
Limitation on Annual Additions to a Defined Contribution Plan2
 
$55,000 $56,000
Limitation on Annual Benefits from a Defined Benefit Plan3
 
$220,000 $225,000
 
Highly Compensated Employee Compensation Threshold4
 
$120,000 $125,000
 
SEP Compensation Threshold
 
$600 $600
Social Security Taxable Wage Base for Social Security Tax (6.2%) $128,700 $132,900
For Medicare Tax (1.45% / 2.35%)
 
No Limit No Limit
Health Savings Accounts: 
        • Individual Contribution Limit
        • Family Contribution Limit
        • Catch-Up Contributions

$3,450
$6,900
$1,000

$3,500
$7,000
$1,000
 
Health Flexible Spending Accounts5 $2,650 $2,6506