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Comp and Benefits Brief

November 15, 2018

2019 Employee Benefit Plan Limits Announced by IRS

The IRS has released the following 2019 adjustments for limits on employee benefits. For the first time since 2015, the highly compensated employee (HCE) limit has increased to $125,000. Most of the limits, except catch-up deferrals to 401(k), 403(b) and 457(b) plans, also increased. Below are updated charts on 2019 limits.

Limits for 2019 – Qualified Plans

Limitation

2018

2019

Elective Deferrals (401(k) and 403(b) pre-tax contributions; 457(b), 402(g)(3))

$18,500

$19,000

Catch-up Contributions – 401(k), 403(b), 457(b), SARSEP plans

$6,000

$6,000

Highly Compensated Employee (HCE) – 414(q)

$120,000

$125,000

Annual Compensation Limit – 401(a)(17), 404(l), 408(k)(3)(C),  408(k)(6)(D)(ii)

$275,000

$280,000

Key employee – 416(i)(1)(A)(i), top heavy and 409A specified employee

$175,000

$180,000

Defined Contribution Plan total annual contributions – 415(c)

$55,000

$56,000

Defined Benefit Plan Maximum benefit – 415(b)

$220,000

$225,000

ESOP – for determining the length of the general 5 year distribution period

$220,000

$225,000

ESOP – maximum account balance subject to 5 year distribution period

$1,105,000

$1,130,000


Limits for 2019 – Tax Withholding Rates
Note: There have not been any changes in the tax rates for FICA, Social Security, and Medicare.

Limitation

2018

2019

Taxable Wage Base

$128,400

$132,900


Limits for 2019 – High Deductible Plans, Health Savings Account and FSAs

Limitation

2018

2019

High Deductible health plan – IRS limits self/family

 

-annual deductible –minimum

 

-out of pocket expenses (HSA) – maximum

 

 

 

$1,350/$2,700

 

$6,650/$13,300

 

 

 

$1,350/$2,700

 

$6,750/$13,500

 

HSA Contribution limit – individual/family

$3,450/$6,900

$3,500/$7,000

HSA Contribution catch-up

$1,000

$1,000

FSA (flexible spending account – health)

$2,650

$2,700

FSA (dependent care account)

$5,000

$5,000

Out of pocket expenses (ACA) -PHSA §2707(b) maximum (in-network essential health benefits for non-grandfathered plans)

  • Self Only
  • Embedded Individual Max within Family Coverage
  • Family

 

 

 

$7,350

$7,350

$14,700

 

 

 

$7,900

$7,900

$15,800

 


Limits for 2019 – Affordable Care Act

Limitation

2018

2019

ACA affordability safe harbor

9.56%

9.86%


Limits for 2019 – Qualified Transportation Fringe Benefit

Limitation

2018

2019

Transit pass, van pool $260 $265
Qualified parking $260 $265

 

Nelson Mullins Executive Compensation and Employee Benefits attorneys are ready to assist with your compensation and benefits related matters in a cost-effective and responsive manner. Please contact one of our Executive Compensation and Employee Benefits partners or the Nelson Mullins attorney with whom you work.

This Comp & Benefits Brief is a periodical publication of Nelson Mullins Riley Scarborough LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have. © 2018 Nelson Mullins Riley & Scarborough LLP. All Rights Reserved.