IRS Announces 2019 Retirement Plan Benefit and Contribution Limits
On November 1, 2018 the Internal Revenue Service (IRS) announced benefit and contribution limits for employer-sponsored retirement plans for the 2019 tax year. The following chart summarizes the 2019 limits and includes the 2018 limits for comparison:
| Plan / Limit | 2018 | 2019 | Code Sections |
| 401(k) Pension Plan | |||
| Maximum annual compensation for calculating employer contributions | $275,000 | $280,000 | IRC §401(a)(17)/404(l) |
| Compensation limit for the definition of highly compensated employees | W-2 greater than $120,000 in 2017 | W-2 greater than $120,000 in 2018 | IRC §414(q)(1)(B) |
| Maximum annual additions (employer plus all employee contributions) | Lesser of total compensation or $55,000 | Lesser of total compensation or $56,000 | IRC §415(c) |
| Maximum amount of elective deferrals | $18,500 | $19,000 | IRC §402(g)(1) |
| Age 50 and over catch-up contributions | $6,000 | $6,000 | IRC §414(v) |
| FICA taxable wage base (OASDI) | $128,700 | $132,900 | n/a |
| Retirement Security (RS) Plan | |||
| Maximum annual compensation for calculating benefit accruals | $275,000 | $280,000 | IRC §401(a)(17)/404(l) |
| Maximum annual annuity (payable in life only form of benefit); Adjusted lower for other forms of benefit | $220,000 | $225,000 | IRC §415(b)(1)(A) |
| 457(b) Plans* (For tax-exempt co-op and governmental plans) | |||
| Maximum amount of elective deferrals and employer contributions | $18,500 | $19,000 | IRC §457(b)(2)/457(e)(15) |
| Special catch-up contributions (allowed in the three years prior to normal retirement age) | Lesser of
|
IRC §457(b)(3) | |
| Age 50 and over catch-up contributions (for governmental plans only) | $6,000
(only if not using special catch-up) |
$6,000
(only if not using special catch-up) |
IRC §414(v) |
*These typically include Executive Compensation 457(b) Plans, Global Executive Compensation Plans and Governmental Deferred Compensation 457(b) Plans.
Co-ops and participants are encouraged to contact your tax adviser for more information.
Full details on the 2019 adjustments are available on the IRS website (see Notice 2018-83). A cost-of-living adjustments (COLA) table showing historical limits is also available online. By late November, NRECA’s Retirement Security Plan online projection calculator will be updated to reflect the 2019 data for benefit projections.
The updated Retirement Benefit and Contribution Limits information along with the sample payroll deduction authorization form reflecting the 2019 limits are both available on the Employee Benefits website.
Contact your NRECA field representative with questions about the contribution limits or other plan features.
For questions about 457(b) Plans, contact the Deferred Compensation Program team at 703.907.6375 or deferredcomp@nreca.coop.