Annual Plan Limits
Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.
| 2019* | 2018* | 2017* | ||
| Compensation | $225,000 | $220,000 | $270,000 | |
| Limits on benefits and contributions: | ||||
| Defined contribution plans | $56,000 | $55,000 | $54,000 | |
| Defined benefit plans | $225,000 | $220,000 | $215,000 | |
| 401(k), 403(b) and 457 plan elective deferrals | $19,000 | $18,500 | $18,000 | |
| SIMPLE plan elective deferrals | $13,000 | $12,500 | $12,500 | |
| IRA | $6,000 | $5,500 | $5,500 | |
| Catch-up contributions: | ||||
| 401(k), 403(b) and 457 plans | $6,000 | $6,000 | $6,000 | |
| SIMPLE plans | $3,000 | $3,000 | $3,000 | |
| IRA | $1,000 | $1,000 | $1,000 | |
| “Highly Compensated” definition | $120,000 | $120,000 | $120,000 | |
| “Key Employee” definition: | ||||
| Officer | $175,000 | $170,000 | $175,000 | |
| 1% owner | $150,000 | $150,000 | $150,000 | |
| Social Security Taxable wage base | $127,200 | $118,500 | $127,200 | |
*The 2015 limits remained unchanged for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment.