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