The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for defined contribution and defined benefit plans for tax year 2019. These items were detailed in Notice 2018-83.
Highlights of Changes for 2019
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.
- The limitation used in the definition of “highly compensated employee” is increased from $120,000 to $125,000.
Highlights of Limitations that Remain Unchanged from 2018
- The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.
If you have any questions regarding these changes or about any other aspects of your employer-sponsored retirement plan, please do not hesitate to reach out to a member of the Hays Financial Group team by contacting email@example.com