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Deductions Limits

2019 Qualified Plans Deduction Limits

MVP Plan Administrators, Inc. is pleased to announce the Pension Plan Limitations for 2019.

Elective Deferrals 402(g) for 401(k), 403(b) and 457 Plans – This limit is combined for Roth or Pre-tax deferral elections. The limit on elective deferrals (again a combined Roth or pre-tax) for participants in 401(k), 403(b) and 457 plans (excluding SIMPLE plans) is increased from $18,500 to $19,000.

Catch-up contributions 414(v)(2)(B)(i) – A participant who is at least age 50 before the end of the calendar year may be eligible to make catch-up contributions. This amount is in addition to the Elective Deferrals and can be either a Roth or Pre-tax election. The catch-up remains unchanged at $6,000.

Simple Plans Elective Deferrals – This limit is combined for Roth or Pre-tax deferral elections. The limit on elective deferrals (again a combined Roth or pre-tax) for participants is increased from $12,500 to $13,000. 

Simple Plans Catch-up contributions – This limit is combined for Roth or Pre-tax deferral elections. The limit on elective deferrals (again a combined Roth or pre-tax) remains unchanged at $3,000.

Limitation for Defined Contribution Plans 415(c)(1)(A) – This limitation is a total aggregate contribution including elective deferral (Pretax or ROTH) contributions, employer contributions and forfeitures. This limit is increased from $55,000 to $56,000.

The Annual Compensation Limit under Sections 401(a)(17), 404(l) This is the maximum amount of compensation that may be considered for plan purposes. This limit is increased from $275,000 to $280,000.

Social Security Taxable Wage Base – This is the dollar limitation that social security tax is paid. This wage amount is also used in the formula for permitted disparity (integrated) plans and is increased from $128,400 to $132,900.

The Limitation used to define a Highly Compensated Employee under Section 414(q)(1)(B) – This is the dollar limit for determining which participants will be considered Highly Compensated Employees. This limitation is increased from $120,000 to $125,000.

The Limitation used to define Key Employee under Section 416(i)(1)(A)(i) – This is the dollar limit used for determining which participants will be considered a Key Employee for a top-heavy plan. This limitation is increased from $175,000 to $180,000.

Please give us a call if you have any questions.

CATEGORY
All News Blog & Articles
Deductions Limits
Innovations
MVP of the Month
Newsletter
Uncategorized
Let's Talk!

If you have questions about what you’re reading, we’ve got you covered. Use our Contact Us form or call:
1-866-687-6877.