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.
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Retirement Plan Limits |
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2018 |
2019 |
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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 |
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“Highly compensated employee” status |
$120,000 |
$125,000 |
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Annual compensation limit |
$275,000 |
$280,000 |
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“Key employee” officer status |
$175,000 |
$180,000 |
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SIMPLE plans Elective deferral limit Catch-up contribution limit |
$12,500 $3,000 |
$13,000 $3,000 |
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IRAs Contribution limit Catch-up contribution limit |
$5,500 $1,000 |
$6,000 $1,000 |
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Health Care FSA |
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2018 |
2019 |
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Annual salary reduction limit |
$2,650 |
$2,700 |
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| Health Savings Accounts | ||
| 2018 | 2019 | |
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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
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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 |
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Qualified Transportation Fringe Benefit |
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2018 |
2019 |
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Maximum monthly qualified parking benefit |
$260 |
$265 |
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Maximum monthly qualified transit pass benefit |
$260 |
$265 |
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Social Security Limits |
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2018 |
2019 |
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FICA wage base |
$128,400 |
$132,900 |
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Earnings test thresholds Before normal retirement age Year of normal retirement age |
$17,040 $45,360 |
$17,640 $46,920 |
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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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