by Gary J. Dankert, Audra J. Ferguson-Allen, Sarah K. Funke, Robert L. Gauss, Melissa Proffitt, Marc W. Siscoe, Tara Schulstat Siscoe, and Christopher S. Sears
Ice Miller LLP is an IMA Member
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.