A stack of pennies to signify the IRA announcing the cost of living adjustments for 2019

IRC Section 415 requires that plan limits be adjusted annually for cost-of-living increases. These adjustments are calculated and released by the Internal Revenue Service (IRS) each year. Earlier this month, the IRS announced the tax year 2019 annual inflation adjustments. Today, additional adjustments were released. A few notable changes for 2019 include the increase of the contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan from $18,500 to $19,000. Additionally, the maximum contribution for a Health FSA benefit was increased by $100 to $2,700. The IRA limit was also increased by $500 to $6,000.

A detailed listing of the 2019 limits is provided below:

Plan Limits 2019 2018 2017
401(k)/403(b) Deferrals $19,000* $18,500 $18,000
401(k)/403(b) Catch Up $6,000 $6,000 $6,000
SIMPLE Deferrals $13,000* $12,500 $12,500
SIMPLE Plan Catch Up $3,000 $3,000 $3,000
457 Deferrals $19,000* $18,500 $18,000
IRA $6,000* $5,500 $5,500
IRA Catch Up $1,000 $1,000 $1,000
Defined Contribution $56,000* $55,000 $54,000
Defined Benefit $225,000* $220,000 $215,000
Includible Compensation $280,000* $275,000 $270,000
Tax Credit ESOP Maximum Balance $1,130,000* $1,105,000 $1,080,000
Social Security Taxable Wage Base $132,900* $128,400 $127,200
SEP Min. Participation Threshold $600 $600 $600
SEP Maximum Participation Threshold $280,000* $275,000 $270,000
Key Employee $180,000* $175,000 $175,000
Highly Compensated Employee  $125,000* $120,000 $120,000
Maximum Monthly Social Security $2,861* $2,788 $2,687
HSA Individual Contribution $3,500* $3,450 $3,400
HSA Family Contribution $7,000* $6,900 $6,750
HDHP Minimum Individual Deductible  $1,350 $1,350 $1,300
HDHP Minimum Family Deductible $2,700 $2,700 $2,600
Monthly Transit/Van Pooling $265* $260 $255
Monthly Qualified Parking $265* $260 $250
FSA Medical Maximum Deferral $2,700* $2,650 $2,600
FSA Dependent Care Maximum Deferral $5,000 $5,000 $5,000

* Indicates a change from 2018 to 2019.


Download the complete list of 2019 limitations for benefit plans (PDF).