Insights

Client Alert: Dollar Limitations for Employee Benefit Plans and Social Security

Client Alerts Employee Benefits & Executive Compensation

The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. The IRS recently announced the new dollar limits for 2019.  Listed below are the key limits.

 

2019 Limit

2018 Limit

401(k), 403(b) and 457(b) Elective Deferral Limit

$19,000

$18,500

Age 50 Catch-Up Contribution Limit (unchanged)

$6,000

$6,000

Highly Compensated Employee Compensation Threshold

$125,000

$120,000

Maximum Compensation Used to Determine Contributions and Benefits

$280,000

$275,000

Defined Contribution Plan Annual Contribution Limit

$56,000

$55,000

Defined Benefit Plan Annual Benefit Limit

$225,000

$220,000

Top Heavy Key Employee Threshold

$180,000

$175,000

Health FSA

$2,700

$2,650

Dependent Care FSA (unchanged)

$5,000

$5,000

Health Savings Accounts

Single/Family

Single/Family

     Maximum Contributions

$3,500/$7,000

$3,450/$6,900

     Catch-Up Contributions (unchanged)

$1,000/$1,000

$1,000/$1,000

     Minimum Deductibles (unchanged)

$1,350/$2,700

$1,350/$2,700

     Maximum Out-of-Pocket

$6,750/$13,500

$6,650/$13,300

If you have any questions about this Alert, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Gray Hutchison (ghutchison@wyrick.com) or San Parikh (sparikh@wyrick.com).