On November 1, the IRS announced the changes to the dollar limits on benefits and contributions under qualified retirement plans, as well as other items, for tax year 2019 [IRS Notice 2018-83, 11-1-18, 2019 Pension Plan Limits].
IRC §415, which provides for dollar limits on benefits and contributions under qualified retirement plans, also requires that the IRS annually adjust these limits for cost-of-living changes. The IRC also requires various other amounts to be adjusted at the same time and in the same manner as these dollar limits.
The limitation on the exclusion for elective deferrals under §401(k), §403(b), and §457(b) plans increases to $19,000 for 2019 (from $18,500).
For more information, see the November 2 issue of Payroll Currently and the APA Compliance Update, 2019 Pension COLAs Announced. Compliance updates are emailed to APA members and are also available on the Compliance Updates web page.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!