The IRS recently announced annual cost-of-living adjustments for certain retirement plans for 2019. See the chart below for several key changes.
|Limit for 2018||Limit for 2019|
|Maximum annual dollar benefit for a defined benefit plan||$220,000||$225,000|
|Maximum dollar limit on additions to a defined contribution plan||$55,000||$56,000|
|Maximum amount of compensation taken into account for qualified retirement plans||$275,000||$280,000|
|Dollar limit for elective deferrals to a 401(k) plan||$18,500 ($24,500 if age 50 or over)||$19,000 ($25,000 if age 50 or over)|
|Dollar limit for contributions to a SIMPLE plan||$12,500 ($15,500 if age 50 or over)||$13,000 ($16,000 if age 50 or over)|
Note: The annual limit for contributions to traditional and Roth IRAs increases from $5,500 for 2018 ($6,500 if age 50 or over) to $6,000 for 2018 ($7,000 if age 50 or over). Phase-out levels for IRA and Roth contributions are also adjusted slightly. Pleas contact our JMF Pension Consulting Group if you have any questions.