RETIREMENT PLAN LIMITS FOR 2019

In Notice 2018-83, the IRS released the dollar limitations for qualified retirement and certain non-qualified plans that become effective January 1, 2019. The dollar limitations adjusted by reference to IRC §415(d) are modified annually for inflation and consequently, most of them are changed for 2019.

 

Of particular note, the 2019 pretax limit that applies to elective deferrals to 401(k), 403(b) and most 457(b) plans is increased to $19,000, up from $18,500 in 2018. The dollar limitation for catch-up contributions for participants age 50 or over is unchanged at $6,000. Plan participants in qualified retirement plans will need to consider the impact of the 2019 dollar limitations in their overall financial planning.

 

A summary comparison of the cost-of-living adjustments applicable to dollar limitations for qualified retirement plans and other items for 2019 are provided in the chart below:

 

 

QUALIFIED RETIREMENT PLAN LIMITATIONS (2018 VS. 2019)

 

 

 

HSA LIMITS RISE FOR 2019

The IRS released Rev. Proc. 2018-30 with the stated purpose to provide the 2019 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code. The 2019 Inflation adjusted items were the annual contribution limitation for calendar year 2019 and the high deductible health plan for 2019.

 

 

A summary comparison of 2018 vs. 2019 and the difference (change) are provided in the chart below:

 

 

HSA AND HDHP LIMITS FOR 2018 VS. 2019

 

Source: SHRM: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/2019-hsa-contribution-limits-rise-irs-says.aspx

 

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.