Updated Employee Benefit Plan and IRA Quick Reference Table 2018 and 2019
The Internal Revenue Service has announced the cost-of-living adjustments applicable to dollar limitations for various qualified retirement plans and other amounts for 2019. Pension plan limitations changed for 2019 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustments. Plan sponsors should verify that their administrative and payroll systems reflect the appropriate limits. Communications that specify benefit plan limits should be reviewed for accuracy before materials are given to participants.
If you have any questions, or for more information about the 2019 cost-of-living adjustments for retirement plans, please contact Marci Boyarski, Angie Whiteside, Tom Krieg, Bob Buss, Deb Teske, or your Wipfli relationship executive.
| 2018 | 2019 | |
| Compensation Limit [IRC Sec. 401(a)(17)] | $275,000 | $280,000 |
| Defined Benefit Plan Annual Benefit Limit | $220,000 | $225,000 |
| Defined Contribution Plan Annual Contribution Limit | $55,000 | $56,000 |
| Social Security Tax Wage Base | $128,400 | $132,900 |
| Highly Compensated Employee Compensation Threshold | $120,000 | $125,000 |
| Key Employee Officer Compensation Threshold | $175,000 | $180,000 |
| SEP Compensation Threshold | $600 | $600 |
| 401(k), 403(b), 457(b), and SARSEPs | ||
| Elective Deferral Limit 2 | $18,500 | $19,000 |
| Catch-up Contribution 3 | $6,000 | $6,000 |
| SIMPLE Plan | ||
| Elective Deferral Limit 2 | $12,500 | $13,000 |
| Catch-up Contribution 3 | $3,000 | $3,000 |
| IRA | ||
| Contribution Limit 2 | $5,500 | $6,000 |
| Catch-up Contribution 3 | $1,000 | $1,000 |
| Traditional IRA Deduction Phaseout (AGI) | ||
| Single, Head of Household - active participant | $63,000/$73,000 | $64,000/$74,000 |
| Married Filing Separate - any spouse participates | $0/$10,000 | $0/$10,000 |
| Married Filing Joint - nonparticipating spouse | $189,000/$199,000 | $193,000/$203,000 |
| Married Filing Joint - participating spouse | $101,000/$121,000 | $103,000/$123,000 |
| Roth IRA Contribution Eligibility (AGI) | ||
| Married Filing Joint | $189,000/$199,000 | $193,000/$203,000 |
| Single, Head of Household | $120,000/$135,000 | $122,000/$137,000 |
| Married Filing Separate - any spouse participates | $0/$10,000 | $0/$10,000 |
| Retirement Saver's Credit Eligibility (AGI) | ||
| Married Filing Joint | $ 63,000 | $ 64,000 |
| Head of Household | $ 47,250 | $ 48,000 |
| Married Filing Separate, Single | $ 31,500 | $ 32,000 |
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| 1 This table has been updated based on IRS Notice (2018-83), November 1, 2018. | ||
| 2 This applies to the total of all elective deferrals an individual makes for the year to 401(k) plans, 403(b) plans, SARSEPs, and SIMPLE plans. However, deferrals to each SIMPLE plan in which the individual participates are also limited, as shown later in the table. | ||
| 3 Catch-up contributions are available each year to individuals who reach age 50 by December 31. | ||
Wipfli's Employee Benefit Services practice is an independent, fee-for-service consulting, recordkeeping, and compliance provider dedicated to helping clients meet their employee benefit needs. Wipfli LLP has been providing qualified and nonqualified plan services for over 30 years.
