2019 Deferred Compensation Limit
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Last Modified
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Oct 21, 2019
With final rush of 2018 year-end planning, many taxpayers are making a New Year’s resolution to not go through that again. Fortunately, the IRS announced the 2019 deferred compensation contribution limits in it Notice 2018-83. That Notice contained higher limits for the coming year, which would be wise to take advantage of. Briefly, the limits identified in the Notice include:
- The salary deferral limit for 401(k), 403(b) and 457 plans increases to $19,000.
- The SIMPLE deferral limit increases to $13,000.
- The annual additions limit for defined contribution plans increases to $56,000.
- The annual additions limit for defined benefit plans increases to $225,000.
- The annual compensation limit increases to $280,000.
- The Social Security Wage Base increases to $132,900.
- The compensation limit for determining who is a highly compensated employee increased for the first time in five years, and is now $125,000.
These are specifically outlined in the Notice: https://www.irs.gov/pub/irs-drop/n-18-83.pdf
About the author:
Ken R. Ashworth
Founding Attorney of Ken R. Ashworth & Associates
Ken R. Ashworth is the Founding Attorney of Ashworth Law in Henderson, Nevada. He focuses his practice on asset protection, business litigation, estate planning, and tax litigation. Ashworth has practiced law since 1992 and is admitted to the State Bar of Nevada. He earned his J.D. from Pepperdine University School of Law in Malibu, California, in 1990. His work includes advising clients on legal matters involving businesses, estates, asset protection, and tax disputes.
