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Employment Blog

2019 Qualified Plan Cost of Living Increases, 2019 Social Security Taxable Wage Base

Authored by Mary Ellen Schill
Mary Ellen Schill
Attorney
Wausau Office

Posted on November 2, 2018
Filed under Employment

On November 1, 2018 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. The vast majority of the limits shown below have increased from last year.

Qualified Plan Limit

Cost-of-Living Adjustments

401(k) and 403(b) elective deferral limit

2018-$18,500

2019-$19,000

$200,000 compensation limit

2018-$275,000

2019-$280,000

$160,000 defined benefit limit

2018-$220,000

2019-$225,000

$40,000 defined contribution limit

2018-$55,000

2019-$56,000

$80,000 definition of highly compensated employee

2018-$120,000

2019-$125,000

SIMPLE IRA deferral limit

2018-$12,500

2019-$13,000

Code Section 457 deferred compensation plan deferral limit

2018-$18,500

2019-$19,000

Code Section 414(v) catch-up contribution limit for employee deferrals

2018-$6,000

2019-$6,000

 

All of the above are plan year limits (i.e., for the plan year which begins in 2019), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $132,900 for 2019, which is an increase from the 2018 limit of $128,400.