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Annual Limitations

Qualified retirement plans are funded by contributions from employers and/or employees. These contributions are subject to a number of annual limitations. Compliance with these limitations is important since the qualification of the plan is at stake.

HAVE ANY LIMITATIONS INCREASED FOR 2019?

The following limits have increased for 2019:

  •   401(k) Elective Deferrals increased to $19,000 from $18,500
  •   The Annual Addition Dollar Maximum increased to $56,000 from $55,000
  •   The Annual Compensation Limit increased to $280,000 from $275,000
  •   The SEP Annual Compensation Limit increased to $280,000 from $275,000
  •   The Annual Defined Benefit Plans Limit increased to $225,000 from $220,000
  •   The Social Security Wage Base increased to $132,900 from $128,400

WHAT ARE THE ANNUAL LIMITATIONS FOR 2019?

2019 Limitations 2018 Limitations
Defined Benefit Dollar Maximum $225,000 $220,000
Annual Addition Dollar Maximum $56,000 $55,000
Employee 401(k)/403(b)/457 Contributions $19,000 $18,500
Catch-up Contributions (Age 50 or older) $6,000 $6,000
Highly Compensated Employee Threshold $125,000 $120,000
Annual Compensation $280,000 $275,000
Social Security Taxable Wage Base $132,900 $128,400
Self-only HSA contribution limit $3,500 $3,450
Family HSA contribution limit $7,000 $6,900