The tables below present the Internal Revenue Service's ("IRS") 2019 cost-of-living adjustments for retirement, health and welfare plans, and transportation programs. The majority of limits increase modestly for 2019, while some of the dollar limits currently in effect for 2018 will remain the same. Notable limits increasing slightly in 2019 are the IRA contribution and elective deferral limits.
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Retirement Plan Limits
Notable 2019 annual retirement plan limitations, as compared to 2018, are as follows:
| 2019 | 2018 | |
| 401(k), 403(b) & 457(b) plan elective deferrals | $19,000 | $18,500 |
| Age 50 catch-up contribution (for above plans) | 6,000 | 6,000 |
| SIMPLE plan elective deferrals | 13,000 | 12,500 |
| SIMPLE plan age 50 catch-up contribution | 3,000 | 3,000 |
| IRA contribution limit (traditional and Roth) | 6,000 | 5,500 |
| IRA age 50 catch-up contribution | 1,000 | 1,000 |
| Defined contribution plan limit | 56,000 | 55,000 |
| Defined benefit plan limit | 225,000 | 220,000 |
| Annual compensation limit | 280,000 | 275,000 |
| Highly-compensated employee | 125,000 | 120,000 |
| Key employee | 180,000 | 175,000 |
| FICA taxable wage base | 132,900 | 128,400 |
Health and Welfare Plan Limits
The 2019 annual limitations, as compared to 2018, are as follows:
| 2019 | 2018 | |
| Flexible Spending Account (FSA) | $2,700 | $2,650 |
| Dependent Care FSA (not indexed) | 5,000 | 5,000 |
| HSA age 55 catch-up contribution (not indexed) | 1,000 | 1,000 |
| Self-only Coverage: | ||
| HSA contribution | 3,500 | 3,450 |
| Minimum deductible for HDHP | 1,350 | 1,350 |
| Maximum OOP expense limit for HDHP | 6,750 | 6,650 |
| Family Coverage: | ||
| HSA contribution | 7,000 | 6,900 |
| Minimum deductible for HDHP | 2,700 | 2,700 |
| Maximum OOP expense limit for HDHP | 13,500 | 13,300 |
HSA = Health Savings Account
HDHP = High Deductible Health Plan
OOP = Out-Of-Pocket
Qualified Transportation Fringe Benefit Limits
The 2019 monthly qualified transportation fringe benefit limitations, as compared to 2018, are as follows:
| 2019 | 2018 | |
| Parking and Transit | $265 | $260 |
| Bicycle | 20 | 20 |
Plan sponsors should update payroll and plan administration systems for the 2019 cost-of-living adjustments and incorporate the new limits in relevant employee and participant communications.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
