Pension Plan Limitations for 2019 Provided by the IRS
On November 1, 2018, the Internal Revenue Service (IRS) announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. It issued technical guidance detailing these items in Notice 2018-83.
A summary of the 2019 pension limitations as compared to 2018 is as follows:
| Plan Maximum Contribution Limits | 2018 | 2019 |
| Section 401(k) Plan or SAR SEP | $18,500 | $19,000 |
| Section 403(b) Plan | $18,500 | $19,000 |
| Section 408(p)(2)(E) SIMPLE Plan Contributions | $12,500 | $13,000 |
| Section 457(e)(15) Limit | $18,500 | $19,000 |
| Section 415 Limit for: | ||
| Defined Contribution Plans | $55,000 | $56,000 |
| Defined Benefit Plans | $220,000 | $225,000 |
| Highly Compensated Employees Section 414(q)(1)(B) | $120,000 | $125,000 |
| Key Employee Section 416(i)(1)(A)(i) | $175,000 | $180,000 |
| Includible Compensation – Section 401(a)(17) -------------------------------------------------------------- SEP Compensation SEP Earnings Threshold |
$275,000 $275,000 $600 |
$280,000 $280,000 $600 |
| Limited Governmental Plans (pre 7/1/93) | $405,000 | $415,000 |
| Section 409 Employee Stock Ownership Plan Subject to 5-Year Distribution Period Maximum Balance Amount Used to Determine the Lengthening of the 5-Year Period |
$1,105,000 $220,000 |
$1,130,000 $225,000 |
The 2019 dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals age 50 or over remains unchanged at $6,000. The 2019 dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals age 50 or over remains unchanged at $3,000.
For a copy of Notice 2018-83, please click on the link provided below.
https://www.irs.gov/pub/irs-drop/n-18-83.pdf
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Updated on November 5, 2018
