2019 Cost of Living Adjustments for Your Retirement Plan Administration

The Internal Revenue Service announced its annual cost of living adjustments for 2019. For qualified retirement plans, certain plan limits changed from the 2018 limits because an increase in the cost-of-living index triggered an adjustment. For example, the overall defined contribution annual limitation (IRC §415(c)) increased to $56,000 (up from $55,000), the overall defined benefit annual limitation (IRC §415(b)) increased to $225,000 (up from $220,000), and the limitation under the definition for highly compensated employee increased to $125,000 (up from $120,000). However, some limits, such as the catch-up contribution limit ($6,000) and the SIMPLE Plan catch-up contribution ($3,000), have not changed.
 
To assist plan sponsors, Ice Miller's updated Cost of Living Adjustment (COLA) chart lists the cost of living adjustments to retirement plan limitations for the years 2009 through 2019. We included the adjusted limits, as well as Pension Benefit Guaranty Corporation guarantees, and Social Security and Medicare contribution rates and wage bases for the past 10 years as a handy reference tool.

Click here to download our updated COLA Chart.
 
To discuss the impact of these cost-of-living adjustments, please contact the attorney with whom you work in the Ice Miller Employee Benefits Group. If you would like a laminated copy of the chart, please e-mail your name and address to diane.sweeney@icemiller.com.
 
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.