Every Fall, the coming year’s Cost-of-Living Adjustments (COLAs) are released by the Internal Revenue Service. The benefit increases counteract the effects of inflation and keep up with the “cost of living”. Below are the limits for 2019.
|Maximum compensation limit||$280,000||$275,000|
|Defined contribution plan maximum contribution||$56,000||$55,000|
|Defined benefit plan maximum benefit||$225,000||$220,000|
|401(k), 403(b) and 457 plan elective maximum elective deferrals||$19,000||$18,500|
|SIMPLE plan elective deferrals||$13,000||$12,500|
|Highly Compensated Salary Threshold||$125,000||$120,000|
|Officer Salary Threshold||$180,000||$175,000|
|Social Security taxable wage base||$132,900||$128,400|
Our complete annual plan limits chart is available at https://www.rpgconsultants.com/news/annual-plan-limits-chart/.
This newsletter is intended to provide general information on matters of interest in the area of qualified retirement plans and is distributed with the understanding that the publisher and distributor are not rendering legal, tax or other professional advice. Readers should not act or rely on any information in this newsletter without first seeking the advice of an independent tax advisor such as an attorney or CPA.
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