IRS Indexed Limits

The IRS indexed dollar limits to qualified retirement plans are provided in the table below. This is provided for informational purposes and is not intended as legal advice.

ItemIRC Reference2018 Limit2019 Limit
401(k) and 403(b) Employee Deferral Limit1402(g)(1)$18,500$19,000
457 Employee Deferral Limit457(e)(15)$18,500$19,000
Catch-up Contribution2414(v)(2)(B)(i)$6,000$6,000
Defined Contribution Dollar Limit415(c)(1)(A)$55,000$56,000
Defined Benefit Dollar Limit415(b)(1)(A)$220,000$225,000
Compensation Limit3401(a)(17); 404(l)$275,000$280,000
Highly Compensated Employee Income Limit4414(q)(1)(B)$120,000$125,000
Key Employee Officer416(i)(1)(A)(i)$175,000$180,000
Social Security Taxable Wage Base $128,400$132,900

1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.

2 Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.

3 All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.

4 For the 2019 plan year, an employee who earns more than $120,000 in 2018 is an HCE. For the 2020 plan year, an employee who earns more than $125,000 in 2019 is an HCE.

 

Tax Credits For Retirement Plan Participants1

The chart below shows the percent of your contribution (up to $2,000) you are eligible to receive as a tax credit based on your annual adjusted gross income and filing status. See the IRS website for filing instructions.2

Tax CreditMarried, Filing JointlyHead of HouseholdAll Other Filers
50%$0 - $38,500$0 - $28,875$0 - $19,250
20%$38,501 - $41,500$28,876 - $31,125$19,251 - $20,750
10%$41,501 - $64,000$31,126 - $48,000$20,751 - $32,000
0%More than $64,000More than $48,000More than $32,000

1 The participant must be over the age of 18 and cannot be a full-time student or dependent.

2 The annual adjusted gross income limits will be adjusted for inflation. These limits are valid for 2019.