2019 Cost-of-Living Adjustments for Retirement and Other Benefit Plans

Retirement Plans

The following limits apply to retirement plans in 2019:

• The limit on elective deferrals under 401(k) and 403(b) plans increased to $19,000 for 2019.
• The annual limit on deferred compensation under eligible 457(b) plans increased to $19,000 for 2019.
• The limit on extra catch-up contributions by participants age 50 or older remains at $6,000. This means that the maximum amount of elective deferral for those participants in 2019 is $25,000.
• The Section 415 limit is increased to $56,000 for 401(k) and other defined contribution plans and $225,000 for defined benefit plans.
• The limit on the annual compensation that can be taken into account by qualified plans is increased to $280,000.
• The dollar level for becoming a highly compensated employee increased to $125,000 of pay in 2019 for determinations in 2020.

In addition, the Social Security wage base is increased to $132,900 for 2019. This is the maximum wage base subject to the FICA tax and is also the maximum "integration level" for plans using "permitted disparity."

Health Savings Accounts

There are some increases to the maximum annual contribution limits for health savings accounts (HSAs) in 2019. For single coverage, the limit is increased to $3,500. For family coverage, the limit is increased to $7,000. The additional "catch-up" HSA contribution that can be made by individuals age 55 or older is fixed by statute at $1,000 for 2019. The minimum deductible required to qualify as a high-deductible health plan (HDHP) in 2019 for purposes of the HSA rules remains the same at $1,350 for single coverage and $2,700 for family coverage. The corresponding limits on HDHP out-of-pocket maximums is increased to $6,750 for single coverage and $13,300 for family coverage in 2019.

Health Flexible Spending Accounts

The maximum salary reduction limit for a Flexible Spending Account is increased to $2,700 for 2019. 

PPACA’s Out-of-Pocket Maximums

The out-of-pocket maximums under the Patient Protection and Affordable Care Act for all non-grandfathered health plans are increased to $7,900 for single coverage and $15,800 for family coverage.

For the most significant limits in effect for 2017, 2018 and 2019, visit Faegre Baker Daniels "Compensation and Benefits Limits" chart.