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 |