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Updated Employee Benefit Plan and IRA Quick Reference Table 2018 and 2019

 

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

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.