December 17, 2018

IRS Releases Pension Plan Amounts for 2019

  • Most pension plan amounts are scheduled to increase for 2019.
  • The contribution limit for employees who participate in Section 401(k) plans is to increase by $500

Adjustments for pension plan amounts for use in 2019 were released Nov. 1 by the Internal Revenue Service.

The contribution limit for employees who participate in Section 401(k), 403(b), and most 457 plans in 2019 is to increase to $19,000 from $18,500, the IRS said in Notice 2018-83. The catch-up contribution limit remains unchanged at $6,000 while the limit regarding SIMPLE retirement accounts is to increase to $13,000, up from $12,500, the agency said.

The maximum annual addition for defined contribution plans is to increase to $56,000 from $55,000 in 2019, the agency said.

The compensation limit used in defining a highly compensated employee for 2019 is to increase to $125,000, up from $120,000, the IRS said. The annual compensation limit for qualified plans is to increase to $280,000 from $275,000.

The dollar limitation of a key employee in a top-heavy plan is to increase to $180,000 from $175,000 for 2019.The compensation limit of a control employee for fringe benefit valuation purposes remains unchanged at $110,000.

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans, the agency said.

Reproduced with permission. Published Nov.1, 2018. Copyright 2018 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bna.com>
!
Employee Info
Employee Info
HRCloud Assistance and W-2 Information
Learn More