2019 401k Contribution Limits

Mar 5, 2019Business, Estate & Retirement Planning

For 2019, most of the limits will remain the same however there were a few key increases to be aware of. For example, the IRS increased the employee’s contribution limit for 401(k) plan participants from $18,500 per year to $19,000 per year. Also, the defined contribution plan annual contribution limit increased from $55,000 to $56,000. These changes will need to be reflected in your company’s plan administration and payroll processes. Below is a summary table reflecting some of the key benefit plan limits: 


2018 2019
Annual compensation limit $275,000 $280,000
401(k), 403(b) & 457(b) employee contributions $18,500 $19,000
Catch-up contributions (if age 50 or older) $6,000 $6,000
Highly compensated employee threshold $120,000 $125,000
Key employee officer compensation threshold $175,000 $180,000
Defined contribution plan annual contribution limit $55,000 $56,000
Employee stock ownership plan (ESOP) limit for determining the length of the general five-year distribution plan $220,000 $225,000
ESOP limit for determining the maximum account balance subject to the general five-year distribution period $1,105,000 $1,130,000
Roth IRA and traditional IRA $5,500 $6,000
Roth IRA and IRA catch-up contributions $1,000 $1,000
SIMPLE salary deferral $12,500 $13,000
SIMPLE catch-up limit $3,000 $3,000

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It is important to update plan documents and benefit plan materials to reflect the recent changes. It is also important to consider any individual participant notification requirements that are necessary to remain in compliance with plan rules. If you have questions about the changes, please contact Smith Schafer for assistance. 


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