The IRS has announced cost of living adjustments (COLA) applicable to qualified plans for 2019.
The limit on elective deferrals to 401(k), 403(b), and 457(b) plans will increase from $18,500 to $19,000. Catch-up contributions will remain limited to $6,000.
The limitation on contributions to participants (including elective deferrals but excluding catch-up contributions) increases from $55,000 to $56,000. The limit on the annual retirement benefit under a defined benefit plan is raised from $220,000 to $225,000.
The annual compensation that can be considered for retirement plan purposes increases from $275,000 to $280,000. The threshold for determining a highly compensated employee increases from $120,000 to $125,000 for compensation paid in the prior year.
Follow the link below for our updated summary of the retirement plan limits:
For questions or more information, please contact Richard Green at firstname.lastname@example.org or (844) 252-7337.