The Internal Revenue Service announced cost-of-living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for the 2019 tax year. See the chart below for further details.
The highlights of limitations that changed from 2018 to 2019 include the following:
- The 415(c) contribution limit applicable to defined contribution retirement plans increased from $55,000 to $56,000.
- The 401(a)(17) annual compensation limit applicable to retirement plans increased from $275,000 to $280,000.
- The elective deferral limit increased to $19,000.
See the chart below for further details for the new 2019 limits, as well as those for recent tax years.