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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
CARES Act re COVID-19
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.