The IRS recently announced (Notice 2018-83, Nov. 2, 2018) that most of the key pension limits will increase next year based on recent cumulative inflation. Notably, after several years, the IRA deduction limit has gone up, and the elective deferral limit has increased again, but the catch-up limit still has not “caught up.”
The Social Security Administration and PBGC recently made similar announcements for the SS wage base, PBGC premiums, etc.
The chart below reflects the key limits, along with other frequently used benefit and compensation items, for 2019.
| 2018 | 2019 | |
|---|---|---|
| 401(k), 403(b), 457(b) and SARSEP Elective Deferrals | $18,500 | $19,000 |
| Catch-Up Contributions to 401(k), 403(b) and Governmental 457 Plans | 6,000 | 6,000 |
| Elective Contributions to SIMPLE Plans | 12,500 | 13,000 |
| Catch-Up Contributions to SIMPLE Plans | 3,000 | 3,000 |
| IRA Contributions | 5,500 | 6,000 |
| Catch-Up IRA Contributions | 1,000 | 1,000 |
| Annual Limitation on Compensation | 275,000 | 280,000 |
| 415 Limitation on DB Benefits | 220,000 | 225,000 |
| 415 Limitation on DC Plan Contributions | 55,000 | 56,000 |
| Highly Compensated Employee Threshold | 120,000 | 125,000 |
| Key Employee Compensation Threshold | 175,000 | 180,000 |
| Social Security Wage Base | 128,400 | 132,900 |
| PBGC Flat-Rate Premium (Single Employer Plans) | 74 | 80 |
| PBGC Variable-Rate Premium (Single Employer Plans) | 38/1,000 UVBs ($523 cap) | 43/1,000 UVBs ($541 cap) |
There also will be modest increases in various AGI phase-out ranges for IRA deductions, Roth IRA eligibility, and the savers’ credit, for example.
