November 6, 2018
The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The 2019 limits are contained in Notice 2018-83, released Nov. 1.
The limits for 2019 are as follows:
- The limitation under Code Section 402(g)(1) on the exclusion for elective deferrals described in Code Section 402(g)(3) is $19,000.
- The limitation on deferrals under Code Section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations is $19,000 for 2019.
- For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000.
- The AGI phase-out range for taxpayers making contributions to a Roth IRA is $193,000 to $203,000 for married couples filing jointly.
- The limitation on the annual benefit under a defined benefit plan under Internal Revenue Code Section 415(b)(1)(A) is $225,000.
- The limitation for defined contribution plans under Code Section 415(c)(1)(A) is $56,000.
- The dollar limitation under Code Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is set at $180,000 for 2019.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b) most 457 plans, and the federal government’s Thrift Savings Plan is $6,000. - The limit for an individual making qualified retirement contributions is $6,000.
- The dollar limitation under Code Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer is $6,000. The dollar limitation under Code Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Code Section 401(k)(11) or Code Section 408(p) for individuals aged 50 or over is $3,000.
- The limitation under Code Section 408(p)(2)(E) regarding SIMPLE retirement accounts is $13,000.
Compensation Limits
- The annual compensation limit under Code Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is $280,000; the 2018 level was $275,000.
- The compensation amount under Code Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) is $600.
Original Article posted Here.
