Each year, the IRS sets limits for pension plans. These limits are reviewed annually and adjusted for inflation. The following are some important limits in effect for 2019:
- Maximum compensation for plan purposes is $280,000
- Maximum monthly benefit for defined benefit plans ages 62 to 65 is the lesser of 100% of compensation or $18,750 with an annual benefit $225,000
- Highly Compensated Employee compensation $125,000+
- Maximum Defined Contribution / Profit Sharing Contribution $56,000
- Maximum SEP Contribution $56,000
- Maximum 401(k) Contribution $19,000. Catch-up Contribution for age 50 and over $6,000
- Maximum SIMPLE Contribution $13,000
CLICK HERE for a PDF copy of the 2019 limits.