Pension Plan Limits for 2019Submitted by Karstens Investments on April 17th, 2019
By Mark Johnson, AIFA
The IRS announced cost of living increases on dollar limits for retirement savings plan accounts. For employees participating in a 401(k), 403(b), 457 or a federal government Thrift Savings plan the annual elective contribution maximum increased by $500 to $19,000 for 2019. The catch-up contribution limit for individuals that attain 50 years of age or older in 2019 remains unchanged at $6,000. The annual additions limitation for all employer and employee contributions made on an employee’s behalf has increased to $56,000 in 2019. The maximum compensation amount allowed to be considered for benefit purposes has also increased to $280,000. SIMPLE plan contribution limits increased by $500 to $13,000 and the catch-up contribution limit remains unchanged at $3,000.
IRA contribution limits increased to $6,000 and the IRA catch-up contribution limit remains at $1,000. The income limitations applicable to phase-out provisions for IRAs and Roth IRAs increased slightly in 2019.
You should consult your advisor for information regarding your specific situation when planning for the new year.