IRS announces 2019 401(k) contribution limits, other fringe benefit limitations

The amount employees can contribute into their 401(k) or 403(b) plan accounts increases by $500, to $19,000 for 2019, the IRS announced. Unchanged from 2018, employees who are at least 50 years old may contribute $6,000 in pretax catch-up contributions. (Notice 2018-83, IRB 2018-47)

Other inflation-adjusted amounts for qualified pension plans include the following:

  • The Section 415 limit (i.e., the overall pretax, after tax and employer contribution) increases $1,000, to 100% of compensation or $56,000
  • The annual compensation limit (i.e., the limit above which contributions can no longer be taken into account) increases $5,000, to $280,000
  • The dollar limitation concerning the definition of key employee in a top-heavy plan increases $5,000, to $180,000
  • The dollar limitation used in the definition of a highly compensated employee increases $5,000, to $125,000
  • The 2018 salary cut off for employees who take paid FMLA leave during 2019 is $75,000 (60% of salary for a highly compensated employee).