MoneyThe Social Security Administration (SSA) announced that the maximum earnings subject to the Social Security component of the FICA tax will increase from $128,400 to $132,900 for 2019. This means that for 2019, the maximum Social Security tax that employers and employees will each pay is $8,239.80 ($132,900 x 6.2%). A self-employed person with at least $132,900 in net self-employment earnings will pay $16,479.6 ($132,900 x 12.40%) for the Social Security part of the self-employment tax. The Medicare component remains 1.45% of all earnings, and individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly, $125,000 for married filing separately) will pay an additional 0.9% in Medicare taxes.

The IRS also announced that the limits on elective deferral for contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government's Thrift Savings Plan will be as follows for 2019.  Please note that the catch-up contribution limit for those 50 and older remains $6,000. 

The IRS has announced the 2019 Pension Plan Limits as follows: 

          Plan Limits
     2018
     2019
401(k) Employee Deferral Contribution Limit
 $ 18,500
$ 19,000
401(k) "Catch Up" Contribution Limit
 $  6,000
$  6,000
SIMPLE Plan Employee Contribution Limit
 $ 12,500
$ 13,000
Annual Defined Benefit Plan Limit
 $220,000
$225,000
Annual Defined Contribution Plan Limit
 $55,000
$ 56,000
Annual Compensation Limit
 $275,000
$280,000
Highly Compensated Employee Limit
 $120,000
$125,000
Social Security Wage Base 
 $128,400
$132,900