Must Know Facts

How much may a participant contribute to a 401(k) plan?

For calendar year 2019 the limit is $19,000

For calendar year 2018 the limit is $18,500 

These limits also apply to 403(b) plans for non-profit entities, and 457 plans covering governmental employees.  This limit is increased subject to cost-of-living increases.

When may a participant begin contributing "catch-up" 401(k) deferrals?

Effective January 1, 2002, 401(k) plans may permit catch-up contributions that allow participants age fifty (50) or older to contribute an additional amount over the 401(k) contribution dollar limit.  The additional amount is $6,000 for both 2019 and 2018.
A participant must reach age 50 before the end of the Plan Year to utilize this provision.

Retirement Plan Limits                

Source   2019 Limit   2018 Limit
401(k), 403(b) & 457 Employee Deferrals       19,000       18,500
Catch-up Contributions              6,000              6,000
Defined Contribution Dollar Limit       56,000       55,000
Defined Benefit Dollar Limit     225,000     220,000
Compensation Limit     280,000     275,000
Highly Compensated Employee Income Limit     125,000     120,000
Social Security Taxable Wage Base     132,900     128,400

Official 2019 IRS Pension Benefits & Contribution Limits - click here-