Tuesday, October 30, 2018

401(k) Contribution Limits for 2019 Announced

The IRS recently announced the contribution limits to 401(k) plans for 2019. Important takeaways for employers from the announcement include:
  • The amount of money that employees under 50 can contribute to their 401(k) plans has increased by $500 from $18,500 to $19,000. The amount that employees over 50 can contribute also remains unchanged at $24,000. The levels remain unchanged due to the small increase in inflation over the past year.
  • The amount that employers can contribute to a 401(k) plan increased slightly from $35,500 to $36,000, and the total amount that can be contributed to a 401(k) plan increased from $53,500 to $54,000.
  • Here is a table listing the contribution limits to 401(k) plans going back to 2011:

Year
Employee Contribution Limit
Maximum Employer Contribution
Maximum for All Contributions
Catch-up Amount
2019
$19,000
$37,000
$56,000
$6,000
2018
$18,500
$36,500
$55,000
$6,000
2017
$18,000
$36,000
$54,000
$6,000
2016
$18,000
$35,500
$53,500
$6,000
2015
$18,000
$35,000
$53,000
$6,000
2014
$17,500
$34,500
$52,000
$5,500
2013
$17,500
$33,500
$51,000
$5,500
2012
$16,500
$33,000
$50,000
$5,500
2011
$16,500
$32,500
$49,000
$5,500
  • The income level of a “highly-compensated employee” increased to $125,000. The regulations governing 401(k) plans prohibit the average contributions of highly-compensated employees from exceeding the average contribution of non-highly compensated employees by more than 2%.

For questions regarding your 401(k) plan, or anything else relating to employee benefits, contact us.