2019 401(k) Contribution Limit
For 2019, the 401(k) Contribution Limit is $19,000 (Elective deferral) and +$6,000 (Age 50 catch-up).
Effective 2019-01-01Source: Notice 2018-83 (IRS)Verified 2026-09-01
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Elective deferral | $18,500 | $19,000 | +$500 (+2.7%) |
| Age 50 catch-up | +$6,000 | +$6,000 | +$0 (+0.0%) |
Who it applies to
Employees who participate in an employer-sponsored deferred compensation plan and are making elective deferrals from their pay.
What changed this year, and why
The elective deferral limit for employer-sponsored retirement plans increased from $18,500 to $19,000, effective January 1, 2019. The catch-up contribution limit for participants aged 50 or older remained at $6,000.
Common questions
- Can workers aged 50 or older contribute more?
- For 2019, workers aged 50 or older can contribute an additional $6,000 as a catch-up contribution on top of the base elective deferral limit.
- How do the 2019 limits compare with 2018?
- The catch-up limit of $6,000 is unchanged from 2018. The base elective deferral limit rose from $18,500 to $19,000.
What the limit counts, and the tax it does not save
An elective deferral is the amount you choose to have your employer contribute to a qualified retirement plan instead of paying it directly to you. When you make an elective deferral, the amount is not included in your wages subject to federal income tax at the time of contribution, which reduces your current taxable income. However, elective deferrals are still included in wages subject to social security and Medicare taxes. This means the deferral lowers your income tax but does not reduce your payroll tax obligation. Elective deferrals apply across several types of employer-sponsored retirement plans, including cash or deferred arrangements, the federal Thrift Savings Plan, tax-sheltered annuity plans, and others. For 2019, the total of all your elective deferrals across all such plans combined is limited to $19,000, unless you qualify for catch-up contributions by reaching age 50. Your employer or plan administrator applies the proper limit, but you remain responsible for monitoring the total amount you defer.
An elective deferral, other than a designated Roth contribution (dis- cussed later), isn't included in wages subject to income tax at the time contributed. However, it’s included in wages subject to social security and Medicare taxes.
Publication 525 (2019), Taxable and Nontaxable Income (IRS)
One limit across every plan you defer into
The overall limit on elective deferrals applies to the total amount you defer across all plans listed in the rules, not separately to each plan. For 2019, you shouldn't have deferred more than a total of $19,000 of contributions to all such plans combined, unless you are 50 or older. Even if you participate in multiple retirement plans through different employers or different types of plans, the $19,000 cap is shared across all of them. Amounts deferred under any specific plan limits are still part of this overall limit. Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions, but you are responsible for monitoring the total you defer to ensure that the deferrals aren't more than the overall limit. If you exceed this combined total, you risk creating excess deferrals that must be corrected.
Overall limit on deferrals. For 2019, you shouldn't have deferred more than a total of $19,000 of contributions to the plans listed in (1) through (3), earlier, unless you are 50 or older.
Publication 525 (2019), Taxable and Nontaxable Income (IRS)
The catch-up once you are old enough for it
Two conditions, and the age is the one people know: you may make catch-up contributions if you are age 50 or older by the end of your tax year, so a birthday in December still counts for the whole year. The amount for 2019 is $6,000 for a 401(k) plan, and it is an additional elective deferral - it sits on top of the $19,000 limit rather than inside it, which is why someone eligible for both can defer the two added together. The same figure covers 403(b) plans, the Thrift Savings Plan, SARSEPs and governmental 457 plans, so changing employer between those does not reset it. What the passage does not do is oblige your plan to offer catch-up contributions at all. Whether the option exists for you is a question about your plan document, and the administrator is the one who answers it.
You may be allowed catch-up contributions (additional elective de- ferrals) if you're age 50 or older by the end of your tax year. For 2019, the catch-up limit for section 401(k) and 403(b) plans, the TSP, SAR- SEP plans, and governmental section 457 plans is $6,000.
Publication 525 (2019), Taxable and Nontaxable Income (IRS)
What happens if you defer more than the limit
If your elective deferrals exceed the annual limit for 2019, you must take corrective action. You must notify your plan by the date required by the plan. If the plan permits, the excess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that permit these distributions. You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. The plan must then pay you the amount of the excess, along with any income earned on that amount, by April 15 of the following year. You must include the excess deferral in your income for the year of the deferral. If you fail to remove the excess by the deadline, you face double taxation: the excess is taxed once when contributed and again when eventually distributed from the plan, unless it was a designated Roth contribution.
Excess deferrals. If your deferrals exceed the limit, you must notify your plan by the date re- quired by the plan. If the plan permits, the ex- cess amount will be distributed to you.
Publication 525 (2019), Taxable and Nontaxable Income (IRS)
Roth deferrals count against the same limit
Designated Roth contributions are a type of elective deferral that employers can offer in qualified retirement plans, including section 401(k) plans, section 403(b) plans, and governmental section 457 plans. Unlike traditional elective deferrals, designated Roth contributions are included in your wages and reported in box 1 of Form W-2, meaning they do not reduce your current taxable income. However, qualified distributions from designated Roth accounts are not included in income when withdrawn. These Roth contributions are treated as elective deferrals for purposes of the annual limit, so they count toward the same cap as traditional deferrals. For 2019, the total of all your elective deferrals - including both traditional and designated Roth contributions - cannot exceed $19,000 across all plans combined. If you are age 50 or older by the end of your tax year, you may make additional catch-up contributions of $6,000. The key benefit of Roth deferrals is tax-free growth and tax-free qualified withdrawals in retirement, though you pay income tax on the contributions upfront.
Designated Roth contributions. These contributions are elective deferrals but are in- cluded in your wages in box 1 of Form W-2.
Publication 525 (2019), Taxable and Nontaxable Income (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2018-83 (IRS)
- Elective deferral
The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) is increased from $18,500 to $19,000.
- Age 50 catch-up
The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or § 408(p) for individuals aged 50 or over remains unchanged at $6,000.