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2019 Cost of Living Adjustments

The Internal Revenue Service has announced the 2019 cost of living adjustments to various limits. The adjusted amounts generally apply for plan years beginning in 2019. Some of the adjusted amounts, however, apply to calendar year 2019.

Employee Benefit Plans

Plan Year

2019

2018

401(k), 403(b), 457 deferral limit

$19,000

$18,500

Catch-up contribution limit (age 50 or older by end of year)

$6,000

$6,000

Annual compensation limit

$280,000

$275,000

Annual benefits payable under defined benefit plans

$225,000

$220,000

Annual allocations to accounts in defined contribution plans

$56,000
(but not more than 100% of compensation)

$55,000
(but not more than 100% of compensation)

Highly compensated employee

Compensation more than $125,000 in 2018 plan year

Compensation more than $120,000 in 2017 plan year

          

Health Savings Accounts

Calendar Year

2019

2018

Maximum contribution

  • Family

  • Self

  • $7,000

  • $3,500

  • $6,900

  • $3,450

Catch-up contribution
(participants who are 55 by end of year)

  • $1,000

  • $1,000

Minimum deductible

  • Family

  • Self

  • $2,700

  • $1,350

  • $2,700

  • $1,350

Maximum out-of-pocket

  • Family

  • Self

  • $13,500

  • $6,750

  • $13,300

  • $6,650

                

Social Security

Calendar Year

2019

2018

Taxable wage base

$132,900

$128,400

Maximum earnings without loss of benefits

  • Under full retirement age

  • Year you reach full retirement age

  • $1,470/mo. ($17,640/yr.)

  • $3,910/mo. up to month of full retirement age ($46,920/yr.)

  • $1,420/mo. ($17,040/yr.)

  • $3,780/mo. up to month of full retirement age ($45,360/yr.)

                         

Social Security Retirement Age

Year of Birth

Retirement Age

Prior to 1938

Age 65

1938

65 and 2 months

1939

65 and 4 months

1940

65 and 6 months

1941

65 and 8 months

1942

65 and 10 months

1943 - 1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 and later

67

© 2019 Varnum LLP

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About this Author

Kristy L. De Vos, Employee Benefits Paralegal, Varnum,
Paralegal

Kristy focuses her Employee Benefits practice on retirement plans. In addition to drafting plans, she submits plans to IRS for opinion and determination letters, and submits plans to IRS under the Voluntary Compliance Program and to the U.S. Department of Labor under the Voluntary Fiduciary Correction Program.

Her experience also includes drafting plan amendments, consent resolutions, Summary Plan Descriptions, Summaries of Material Modifications, 204(h) Notices, and plan administrative forms. Kristy answers client questions about plan administration and assists...

616-336-6564
Lena Gionnete, Varnum Law Firm, Labor and Employment Law Attorney
Associate

Lena is an attorney on the Employee Benefits Practice Team. She works with employers, executives and third-party administrators on a wide range of issues relating to tax-qualified pension plans, 401(k) and profit sharing plans, non-qualified plans, and health and welfare benefit plans. She advises clients regarding compliance with federal laws governing employee benefit plans, including the Internal Revenue Code, ERISA, PPACA, HIPAA and COBRA, and also counsels clients on benefits issues in connection with corporate transactions.

248-567-7435