IRS Announces Cost of Living Adjustments for 2019


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:

https://windes.com/wp-content/uploads/2018/11/2019-Qualified-Plan-and-IRA-Limits-2011-2019.pdf

For questions or more information, please contact Richard Green at rgreen@windes.com or (844) 252-7337.

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