2019 contribution limits | American Funds

  • Help
  • RETIREMENT PLANNING
  • MUTUAL FUND BASICS
  • ROLLOVERS
  • CALCULATORS & LEARNING TOOLS
  • FUND INFORMATION
  • ABOUT AMERICAN FUNDS

In the news

2019 contribution limits

December 21, 2018

Contribution maximums and other dollar limits are readjusted annually based on inflation.

The table below shows the allowable contribution amounts and dollar limits for 2019 and 2018.

Retirement plan contribution and dollar limits

Type

Limits

  2019 2018
401(k) deferrals (total traditional and Roth employee contributions) $19,000 $18,500
Catch-up contributions $6,000 $6,000
Annual additions limit for DC plans $56,000* $55,000*
Annual compensation limit $280,000 $275,000
Lookback year† compensation for Highly Compensated Employees (HCEs) $125,000 $120,000
Taxable wage base for Social Security $132,900 $128,400
Taxable wage base for Medicare Unlimited Unlimited

* The DC annual additions limit is effective for limitation years ending in the calendar year.

† Use current lookback year compensation to determine HCEs for the following year. For example, use the 2018 lookback compensation to determine the HCEs for the plan year beginning in 2019.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.