Pension Plan Limitations for 2019 Provided by the IRS

Gaining Peak Productivity: The Evolution of the 40-Hour Workweek

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




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





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.

ADP Compliance Resources

ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.

ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.

If you have any questions regarding our services, please call 855-466-0790.

One ADP Boulevard,
Roseland, NJ 07068

Updated on November 5, 2018

Download a PDF version of this article here.