Retirement Plan Limits Going Up

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Retirement Plan Limits Going Up

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.

By | 2018-12-20T14:49:50+00:00 December 26th, 2018|News & Events, Pension Admin & Consulting|0 Comments

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Bobby M. Bragg

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