2019 Changes

Two annual limits apply to contributions:

• A limit on employee elective deferrals; and

• An overall limit on contributions to a participant’s plan account (including the total of all employer contributions, employee elective deferrals (but not catch-up contributions) and any forfeiture allocations).

Deferral limits for 401(k) plans 

The limit on employee elective deferrals (for traditional and safe harbor plans) is:

• $19,000 in 2019 ($18,500 in 2018)

• The $19,000 amount may be increased in future years for cost-of-living adjustments

Generally, you aggregate all elective deferrals you made to all plans in which you participate to determine if you have exceeded these limits. If a plan participant’s elective deferrals are more than the annual limit, find out how you can correct this plan mistake.

Deferral limits for a SIMPLE 401(k) plan

The limit on employee elective deferrals to a SIMPLE 401(k) plan is:

• $13,000 in 2019 ($12,500 in 2015- 2018)

• This amount may be increased in future years for cost-of-living adjustments

Plan-based restrictions on elective deferrals

These restrictions may further reduce the maximum allowable elective deferrals:

• Your plan's terms may impose a lower limit on elective deferrals

• If you are a manager, owner, or highly compensated employee, your plan might need to limit your elective deferrals to pass nondiscrimination tests

Catch-up contributions for those age 50 and over

If permitted by the 401(k) plan, participants who are age 50 or over at the end of the calendar year can also make catch-up contributions. The additional elective deferrals you may contribute is:

• $6,000 in 2015 - 2019 to traditional and safe harbor 401(k) plans

• $3,000 in 2015 - 2019 to SIMPLE 401(k) plans

• These amounts may be increased in future years for cost-of-living adjustments

You don’t need to be “behind” in your plan contributions in order to be eligible to make these additional elective deferrals.