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
      Catch-up contributions$6,000$6,000
SIMPLE plan elective deferrals$13,000$12,500
      Catch-up contributions$3,000$3,000
      Catch-up contributions$1,000$1,000
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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