The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
Description of Limit | 2019 | 2018 | |||
|
|||||
401(k) Elective Deferrals | $ | 18,500 | $ | 18,000 | |
403(b)/457 Elective Deferrals | $ | 18,500 | $ | 18,000 | |
Annual Compensation Limits | $ | 275,000 | $ | 270,000 | |
Annual Defined Contribution Limits | $ | 55,000 | $ | 54,000 | |
Catch-up Contributions | $ | 6,000 | $ | 6,000 | |
Highly Compensated Employees | $ | 120,000 | $ | 120,000 | |
Social Security Wage Base | $ | 128,700 | $ | 127,200 | |
Annual Benefit Limit (Defined Benefit Plans) | $ | 220,000 | $ | 215,000 | |
|
|||||
Source: Internal Revenue Service. |