Information You Can Use - IRS Updates 401(k) Plan Limits for 2019
The IRS has announced an increase to the amount that can be contributed to 401(k) plans in 2019. You will be able to defer $19,000 ($25,000 if you are 50 or over).
The annual information release also serves as a great reminder to review your year-to-date contributions for 2018. If you intend to make the maximum salary deferral contributions to your 401(k), take a moment to ensure that you have already maxed out for 2018 or are on track to max out before 12/31. The contribution limit for 2018 is $18,500 ($24,500 if you are 50 or older).
Things to consider:
- Have you updated your contributions since the limit was $18,000 or $17,500?
- Did you turn 50 this calendar year? If so, did you update your contributions to include the $6,000 catch up contribution?
- There’s still time to make up for any shortfalls before the end of 2018.
Here's a quick chart summarizing some of the updated limits:
| Description | 2018 | 2019 |
| 401(k) / Roth 401(k) Salary Deferral | $18,500 | $19,000 |
| 401(k) / Roth Catch up (age 50 or older) | $6,000 | $6,000 |
| Total Employee + Employer 401(k) Contribution Limit | $55,000 | $56,000 |
| Annual Compensation Limit | $275,000 | $280,000 |
| Highly Compensated Employee Threshold | $120,000 | $125,000 |
| Key Employee (Officer Threshold) | $175,000 | $180,000 |
| Social Security Taxable Wage Base | $128,400 | $132,900 |
| Defined Benefit Maximum Annual Benefit | $220,000 | $225,000 |
Happy Planning,
Ryan