Pension Plan Limitations for 2019 Provided by the IRS

November 05, 2018

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

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