Employee Benefit Plan Limits for 2019

Findley is pleased to provide you the following 2019 limits (and comparable 2018 figures) for various employee benefit plans and Social Security.

Employee Benefit Plans 2018 2019
401(k) elective deferral dollar limit $ 18,500 $ 19,000
403(b) elective deferral dollar limit 1 $ 18,500 $ 19,000
457 eligible plan maximum deferral limit $ 18,500 $ 19,000
401(k), 403(b), state and local government 457, and 408(p)
catch-up elective deferral (must be at least age 50)
$  6,000 $  6,000
Defined benefit plans – maximum annual benefit $ 220,000 $ 225,000
Defined contribution plans – maximum annual addition $ 55,000 $ 56,000
Annual compensation limit $ 275,000 $ 280,000
Highly compensated employee 2 $ 120,000 $ 125,000
SIMPLE retirement accounts – maximum elective deferrals $ 12,500 $ 13,000
Key Employee $ 175,000 $ 180,000
Social Security 2018 2019
Social Security taxable wage base 3
Exempt earnings under the Social Security earnings test
$ 128,400 $ 132,900
Under Social Security retirement age (SSRA) 4,5 $ 17,040 $ 17,640
Year in which SSRA is attained (per month) 6 $ 3,780 $ 3,910
SSRA and older all all

1 May be increased by as much as $3,000 in certain situations.
2 Compensation threshold used to determine next year’s HCEs.
3 Employers and employees each pay 6.2% Social Security tax on earnings up to this level. All earnings are subject to an additional 1.45% Medicare tax, which is also paid by both employers and employees. Medicare tax rate increases by .9% if the taxpayer’s AGI exceeds: $250,000 if filing a joint return; $125,000 if married filing separately, and $200,000 for any other filing status.
4 SSRA for those born 1943 through 1954 is 66. SSRA increases to age 67 for those with later birth years.
5 In general, $1 of the Social Security benefit is lost for each $2 of earnings over threshold before the year SSRA is attained.
6 In the year SSRA is attained, $1 of the Social Security benefit is lost for each $3 of earnings over the threshold during the months before the individual’s SSRA occurs.

Part D Standard Benefit 2018 2019
Deductible $ 405 $ 415
Initial Coverage Limit $ 3,750 $ 3,820
Maximum out-of-pocket threshold $ 5,000 $ 5,100
Spending before catastrophic coverage $7,508.75 $ 7,653.75
Retiree drug subsidy (RD) amounts
Cost threshold
Cost limit
 

$ 405
$ 8,350

 

$ 415
$ 8,500

Health Savings Accounts 2018 2019
Minimum deductible to be a qualified high deductible health plan

Self-only coverage
Family coverage

 

$ 1,350
$ 2,700

 

$ 1,350
$ 2,700

Maximum annual HSA contribution
(excluding catch-up contribution)
Self-only coverage
Family coverage
 

$ 3,450
$ 6,900

 

$ 3,500
$ 7,000

Annual catch-up contribution for individuals age 55
or older (per person)
$ 1,000 $ 1,000
Out-of-pocket maximums

Self-only coverage
Family coverage

 

$  6,650
$ 13,300

 

$  6,750
$ 13,500

For More Information

If you have questions or would like more information about the new employee benefit plan limits, or to obtain historical information, please contact Jason Rothman, JD, at 216.875.1907 or Jason.Rothman@findley.com.

Posted November 1, 2019

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Category: Findley Post, Retirement Plans, Health and Group Benefits
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