The Internal Revenue Service (IRS) has announced the cost‑of‑living adjustments affecting pension plans and other retirement-related limitations for the 2019 tax year. Although many of the limits remain unchanged from 2018, some of the highlights include:
- The annual elective deferral limit is increased $18,500 to $19,000
- The annual age 50+ catch-up contribution limit stays the same at $6,000
- The annual additions limit will increase from $55,000 to $56,000
- The annual benefit under a defined benefit plan will increase from $220,000 to $225,000
- The annual compensation limit will increase from $275,000 to $280,000
- The annual compensation limits for highly compensated and key employees will increase to $125,000 and $180,000 respectively
For additional information, download our 2019 Maximum Benefits and Contribution Limits reference material.
