Each year the IRS provides cost-of-living adjustments to benefit plan limits to assist sponsors in administering their plans. On November 1, the IRS released Notice 2018-83, which provided 2019 limits for retirement plans. Information on the release can be found here.
Some of the key limits are shown below, along with the increase in the Social Security taxable wage base released by the Social Security Administration earlier this year.
|Annual defined benefit limit||$225,000||$220,000|
|Annual defined contribution limit||$ 56,000||$ 55,000|
|Elective deferrals [401(k) / 403(b) / 457]||$ 19,000||$ 18,500|
|Highly compensated employee threshold||$125,000||$120,000|
|Social Security taxable wage base||$132,900||$128,400|
Feel free to reach out to your Foster & Foster consultant with any questions you may have.