With final rush of 2018 year-end planning, many taxpayers are making a New Year’s resolution to not go through that again. Fortunately, the IRS announced the 2019 deferred compensation contribution limits in it Notice 2018-83. That Notice contained higher limits for the coming year, which would be wise to take advantage of. Briefly, the limits identified in the Notice include:
· The salary deferral limit for 401(k), 403(b) and 457 plans increases to $19,000.
· The SIMPLE deferral limit increases to $13,000.
· The annual additions limit for defined contribution plans increases to $56,000.
· The annual additions limit for defined benefit plans increases to $225,000.
· The annual compensation limit increases to $280,000.
· The Social Security Wage Base increases to $132,900.
· The compensation limit for determining who is a highly compensated employee increased for the first time in five years, and is now $125,000.
These are specifically outlined in the Notice