IRS ANNOUNCES 2019 PLAN CONTRIBUTION AND BENEFIT LIMITS

For Faculty, For Staff, Midd Points
On November 1, 2018, the Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items beginning January 1, 2019. See the chart below for further details.

The highlights of limitations that changed from 2018 to 2019 include the following:

  • The 401(a) annual compensation limit applicable to retirement plans increased from $275,000 to $280,000.
  • The elective deferral limit increased from $18,500 to $19,000 and age 50 catch-up limit remains unchanged at $6,000.
  • The 415(c) contribution limit applicable to defined contribution retirement plans increased from $55,000 to $56,000.
2019 2018
RETIREMENT PLANS
Annual Compensation Limits For Retirement Program Purposes 280,000 275,000
Elective Deferrals 403(b) – (for under age 50) 19,000 18,500
Catch-up Contributions For 403(b) Plan Participants age 50 and over 6,000 6,000
457(b) Elective Deferrals 19,000 18,500
Defined Contribution Limits On Maximum Combined Employee/Employer Contributions To Defined Contributions Plans 56,000 55,000
OTHER
Social Security Taxable Wage Base 132,900 128,400
Medicare Wage Base No Limit No Limit

All figures in US dollars.

Sources: www.irs.gov, www.ssa.gov

 

About Franklin Ford Daniel

Franklin Daniel, a Human Resources Professional at Middlebury College, enjoys the administration of the College's retirement plans and other benefits. He is a member of WorldatWork Society of Certified Professionals where he earned the Certified Benefits Professional designation, trained to comply with U.S. legal and regulatory requirements and integrate benefits programs with business strategy and design. Prior to joining Middlebury College, Franklin started his career with the Service Employees International Union holding various roles where his professional training started in the field of employee benefits. Before his human resources career, Franklin spent his days in the soccer field as a professional soccer player with the NJ Nationals and Club Atlético Banfield (Argentina). He also spent a year working as a barista in a seedy Parisian cafe in Greenwich Village, which he still considers his most challenging job to date. He holds a B.A. from the University of Rhode Island. Outside the office, he can be found walking his Newfoundland, coaching and playing soccer and his perennial dream to explore and photograph New York City's backstreets on his motorcycle. Follow @franklindaniel_ on Twitter.