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2019 Benefit Limits

November 16, 2018

Overview

The Internal Revenue Service and Social Security Administration have announced the various retirement plan benefit and employment tax limits for 2019.  Certain limitations will not change for 2019 because they are not subject to annual adjustments or because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment.  However, other limitations will change because the increase in the index did meet the statutory thresholds.

The limits for 2019, as compared to those in effect for the current year, are set forth below.  The limits that have changed are printed in bold.

Retirement Plan Limits

 

2018

2019

Limits on benefits and contributions

            401(k) & 403(b) plans, elective deferral limit

            457(b) plan, total contribution limit

            Age 50 catch-up contribution limit

            Defined contribution plan, total contribution limit

            Defined benefit plan, annual accrual limit

$18,500

$18,500

$6,000

$55,000

$220,000

$19,000

$19,000

$6,000

$56,000

$225,000

“Highly compensated employee” status

$120,000

$125,000

Annual compensation limit

$275,000

$280,000

“Key employee” officer status

$175,000

$180,000

SIMPLE plans

            Elective deferral limit

            Catch-up contribution limit

$12,500

$3,000

$13,000

$3,000

IRAs

            Contribution limit

            Catch-up contribution limit

$5,500

$1,000

$6,000

$1,000

 

Health Care FSA

 

2018

2019 

Annual salary reduction limit

$2,650

$2,700

 
Health Savings Accounts
  2018 2019 

Annual HSA contribution deduction limit

            Self-only coverage

            Family coverage

            Catch-up contribution

$3,450

$6,900

$1,000

$3,500

$7,000

$1,000

 

Out-of-pocket spending limit

            Self-only coverage

            Family coverage

$6,650

$13,300

$6,750

$13,500

Minimum annual deductible

            Self-only coverage

            Family coverage

$1,350

$2,700

$1,350

$2,700

 

Qualified Transportation Fringe Benefit

 

2018

2019

Maximum monthly qualified parking benefit

$260

$265

Maximum monthly qualified transit pass benefit

$260

$265

 

Social Security Limits

 

2018

2019

FICA wage base

$128,400

$132,900

Earnings test thresholds

            Before normal retirement age

            Year of normal retirement age

$17,040

$45,360

 

$17,640

$46,920

Maximum monthly benefit

$2,788

$2,861

 

For further information or questions regarding the 2019 benefit limits, please contact Wally Miller at 541-686-3299 or wmiller@schwabe.com.

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