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IRS Announces New Limits for Qualified Retirement and Pension Plans

Written by Zinner & Co. Tax Team | Nov 8, 2018 12:05:00 PM

The IRS has recently issued new limits on qualifying pensions and retirement related accounts (see IRS Notice 2018-83.) The new amounts, which are a cost-of-living adjustment, become effective January 1, 2019.

 

Qualified Plan Limits

401(k) Elective deferrals $19,000
Catch-up contribution limit $6,000 (unchanged from 2017)
Defined Contribution Plan Annual Contribution $56,000
Annual compensation limit $280,000
Defined benefit plan annual benefit limit $225,000
Taxable wage base

$132,900

Highly Compensated Employees

Any employee with more than 5% ownership or lineal ascendant or descendant of 5% owner (current or preceding year) $125,000 (unchanged from 2017)

 Key Employees

Any office $180,000
5% owner No minimum amount

457(e)15

457(e) 15 $19,000

 Simple Plans

Annual Deferral $13,000
SIMPLE Catch-up $3,000 (unchanged from 2017)

SEP

Minimum compensation $600
Annual compensation $280,000

 

If you have any questions about these new limits and how they may affect you, please contact your Zinner tax professional.