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 your plan’s document. The elective deferral and catch-up limits are always based on the calendar year.
| 2019 | 2018 | 2017 | |
|---|---|---|---|
| Compensation | $ 280,000 | $ 275,000 | $ 270,000 |
| Limits on Benefits and Contributions: | |||
| Defined contribution plans | $ 56,000 | $ 55,000 | $ 54,000 |
| Defined benefit plans | $ 225,000 | $ 220,000 | $ 215,000 |
| 401(k), 403(b) and 457 plan elective deferrals | $ 19,000 | $ 18,500 | $ 18,000 |
| SIMPLE plan elective deferrals | $ 13,000 | $ 12,500 | $ 12,500 |
| IRA | $ 6,000 | $ 5,500 | $ 5,500 |
| Catch-up contributions: | |||
| 401(k), 403(b) and 457 plans | $ 6,000 | $ 6,000 | $ 6,000 |
| SIMPLE plans | $ 3,000 | $ 3,000 | $ 3,000 |
| IRA | $ 1,000 | $ 1,000 | $ 1,000 |
| “Highly Compensated” Definition | $ 125,000 | $ 120,000 | $ 120,000 |
| “Key Employee” Definition | |||
| Officer | $ 180,000 | $ 175,000 | $ 170,000 |
| 1% Owner | $ 150,000 | $ 150,000 | $ 150,000 |
| Social Security taxable wage base | $ 132,900 | $ 128,400 | $ 127,200 |