Retirement Plan Limits
Notable 2019 annual retirement plan limitations, as compared to 2018, are as shown in table below:
| 2019 | 2018 | |
|---|---|---|
| 401(k), 403(b) & 457(b) plan elective deferrals | $19,000 | $18,500 |
| Age 50 catch-up contribution (for above plans) | 6,000 | 6,000 |
| SIMPLE plan elective deferrals | 13,000 | 12,500 |
| SIMPLE plan age 50 catch-up contribution | 3,000 | 3,000 |
| IRA contribution limit (traditional and Roth) | 6,000 | 5,500 |
| IRA age 50 catch-up contribution | 1,000 | 1,000 |
| Defined contribution plan limit | 56,000 | 55,000 |
| Defined benefit plan limit | 225,000 | 220,000 |
| Annual compensation limit | 280,000 | 275,000 |
| Highly-compensated employee | 125,000 | 120,000 |
| Key employee | 180,000 | 175,000 |
| FICA taxable wage base | 132,900 | 128,400 |
Health and Welfare Plan Limits
The 2019 annual limitations, as compared to 2018, are as shown in table below:
| 2019 | 2018 | |
|---|---|---|
| Flexible Spending Account (FSA) | $2,700 | $2,650 |
| Dependent Care FSA (not indexed) | 5,000 | 5,000 |
| HSA age 55 catch-up contribution (not indexed) | 1,000 | 1,000 |
| Self-Only Coverage: | ||
| HSA contribution | 3,500 | 3,450 |
| Minimum deductible for HDHP | 1,350 | 1,350 |
| Maximum OOP expense limit for HDHP | 6,750 | 6,650 |
| Family Coverage: | ||
| HSA contribution | 7,000 | 6,900 |
| Minimum deductible for HDHP | 2,700 | 2,700 |
| Maximum OOP expense limit for HDHP | 13,500 | 13,300 |
HSA = Health Savings Account
HDHP = High Deductible Health Plan
OOP = Out-Of-Pocket
Qualified Transportation Fringe Benefit Limits
The 2019 monthly qualified transportation fringe benefit limitations, as compared to 2018, are as shown in table below:
| 2019 | 2018 | |
|---|---|---|
| Parking and Transit | $265 | $260 |
| Bicycle | 20 | 20 |
Plan sponsors should update payroll and plan administration systems for the 2019 cost-of-living adjustments and incorporate the new limits in relevant employee and participant communications.
For more information about the new IRS employee benefit plan limits, contact Larry Ruff at [email protected] or 312.670.7444 for assistance.
