by Matt Gerard
on November 6, 2019
Today, the IRS issued Revenue Notice 2019-59 which provides the 2019 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of retirement plans, the most applicable adjustments announced in Revenue Procedure 2019-59 are listed in the following table:
| 401(k) Plan Limits and Thresholds | |||
| Maximum Elective Deferral Dollar Limit | 2020 (new) | 2019 (old) | |
| 401(k) Plan* | $19,500 | $19,000 | |
| SIMPLE 401(k) Plan |
$13,500 | $13,000 | |
| Maximum Catch-Up Contribution Dollar Limit | 2020(new) | 2019(old) | |
| 401(k) Plan* | $6,500* | $6,000 | |
| SIMPLE 401(k) Plan |
$3,000* | $3,000 | |
| *The elective deferral limit also applies to 403(b) contracts, 457 plans, and SARSEPs under IRC §§402(g), 457(e), and 414(v). | |||
| Annual Additions | 2020 (new) | 2019 (old) | |
| Annual Addition Dollar Limit on Contributions |
$57,000 | $56,000 | |
| Compensation | 2020 (new) | 2019 (old) | |
| Annual Dollar Limit on Includible Compensation |
$285,000 | $280,000 | |
| HCEs and Key Employees | 2020 (new) | 2019 (old) | |
| Highly Compensated Employee Dollar Threshold | $130,000 | $125,000 | |
| Key Employees Dollar Thresholds | |||
| Officer Group | $185,000 | $180,000 | |
| More-Than-1% Owner | $150,000 | $150,000 | |
Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.
