Plan Limits

Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the "plan year" as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

2019 2018 2017 2016
Compensation $280,000 $275,000 $270,000 $265,000
Limits on benefits and contributions:
Defined contribution plans $56,000 $55,000 $54,000 $53,000
Defined benefit plans $225,000 $220,000 $215,000 $210,000
401(k), 403(b) and 457 plan elective deferrals $19,000 $18,000 $18,000 $18,000
SIMPLE plan elective deferrals $13,000 $12,500 $12,500 $12,500
IRA $6,000 $5,500 $5,500 $5,500
Catch-up contributions:
401(k), 403(b) and 457 plans $6,000 $6,000 $6,000 $6,000
SIMPLE plans $3,000 $3,000 $3,000 $3,000
IRA $1,000 $1,000 $1,000 $1,000
"Highly Compensated" definition $125,000 $120,000 $120,000 $120,000
"Key Employee" definition:
Officer $180,000 $175,000 $175,000 $170,000
1% owner $150,000 $150,000 $150,000 $150,000
Social Security taxable wage base $132,900 $128,400 $127,200 $118,500

HILLS PENSION ASSOCIATES, INC.

 

31 Hayward Street Suite 2A/211 Franklin, MA 02038
38 Colchester Road P.O. Box 157 Plympton, MA 02367
p 508-928-7172/ 844-395-401k
f 508-928-1910 | e hills@hillspallc.com