Making Limits Greater Again – IRS Issues Guidance on Cost of Living Adjustments
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2 min read
Matthew P. Chiarello
Partner
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The IRS recently announced cost-of-living adjustments for 2019 in Notice 2018-83 and related guidance. The key dollar limits for qualified retirement plans and health and welfare plans are noted below. Qualified Retirement Plan Dollar Limits |
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| 2018 | 2019 | |
| Limit on Section 401(k) deferrals (Section 402(g)) | $18,500 | $19,000 |
| Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) | $6,000 | $6,000 |
| Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) | $18,500 | $19,000 |
| Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) | $220,000 | $225,000 |
| Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) | $55,000 | $56,000 |
| Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) | $275,000 | $280,000 |
| Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) | $120,000 | $125,000 |
| Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) | $175,000 | $180,000 |
| Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) | $1,105,000 | $1,130,000 |
| SIMPLE retirement account limitation (Section 408(p)(2)(E)) | $12,500 | $13,000 |
| Social Security Taxable Wage Base | $128,700 | $132,900 |
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Health and Welfare Plan Dollar Limits |
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| 2018 | 2019 | |
| Annual Cost Sharing Limit (self-only coverage) | $7,350 | $7,900 |
| Annual Cost Sharing Limit (other than self-only coverage) | $14,700 | $15,800 |
| HDHP Out-of-Pocket Maximum (self-only coverage) | $6,650 | $6,750 |
| HDHP Out-of-Pocket Maximum (family coverage) | $13,300 | $13,500 |
| Annual HDHP Deductible (self-only coverage) | Not less than $1,350 | Not less than $1,350 |
| Annual HDHP Deductible (family coverage) | Not less than $2,700 | Not less than $2,700 |
| Maximum Annual HSA Contributions (self-only coverage) | $3,450 | $3,500 |
| Maximum Annual HSA Contributions (family coverage) | $6,900 | $7,000 |
| Maximum HSA Catch-Up Contribution | $1,000 | $1,000 |
| Health Flexible Spending Account Maximum | $2,650 | $2,700 |