Client Alerts 2019 Employee Benefit Plan and Transportation Limits

Publication
11.15.18 | By: Larry A. Ruff

The tables below present the Internal Revenue Service’s (“IRS”) 2019 cost-of-living adjustments for retirement, health and welfare plans, and transportation programs. The majority of limits increase modestly for 2019, while some of the dollar limits currently in effect for 2018 will remain the same. Notable limits increasing slightly in 2019 are the IRA contribution and elective deferral limits.

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Retirement Plan Limits

Notable 2019 annual retirement plan limitations, as compared to 2018, are as follows:

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 follows:

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 follows:

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 lruff@orba.com or 312.670.7444 for assistance.

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