Making a List, Checking it Twice – 2017

It’s that time of year when boys and girls start making their lists for the holidays, but we in the employee benefits world make a very different kind of list.  In the rapidly changing world of employee benefits and executive compensation law, checklists can be particularly helpful to make sure important issues do not fall through the cracks.  Each year we publish health and welfare, cost-of-living, executive compensation, and qualified retirement plan checklists to help individuals stay apprised of changes in the law, changes that they might need to make to their employee benefits plans, and various notice requirements.  We just published the last of our annual checklists.  Read More ›

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IRS Announces 2018 Cost of Living Adjustments

This post has been updated as of March 8, 2018, to reflect the revised maximum annual HSA contribution limit for family coverage set out in Revenue Procedure 2018-18.

The IRS recently announced cost-of-living adjustments for 2018 in Notice 2017-64 and related guidance.  The key dollar limits for qualified retirement plans and health and welfare plans are noted below.

Qualified Retirement Plan Dollar Limits

  2017 2018
Limit on Section 401(k) deferrals (Section 402(g)) $18,000 $18,500
Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) $6,000 $6,000
Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15)) $18,000 $18,500
Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A)) $215,000 $220,000
Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A)) $54,000 $55,000
Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17)) $270,000 $275,000
Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B)) $120,000 $120,000
Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i)) $175,000 $175,000
Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii)) $1,080,000 $1,105,000
SIMPLE retirement account limitation (Section 408(p)(2)(E)) $12,500 $12,500
Social Security Taxable Wage Base $127,200 $128,700

Health and Welfare Plan Dollar Limits

  2017 2018
Annual Cost Sharing Limit (self-only coverage) $7,150 $7,350
Annual Cost Sharing Limit (other than self-only coverage) $14,300 $14,700
HDHP Out-of-Pocket Maximum (self-only coverage) $6,550 $6,650
HDHP Out-of-Pocket Maximum (family coverage) $13,100 $13,300
Annual HDHP Deductible (self-only coverage) Not less than $1,300 Not less than $1,350
Annual HDHP Deductible (family coverage) Not less than $2,600 Not less than $2,700
Maximum Annual HSA Contributions (self-only coverage) $3,400 $3,450
Maximum Annual HSA Contributions (family coverage) $6,750 $6,900 $6,850(revised by Rev.
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Making a List, Checking it Twice

It’s that time of year when boys and girls start making their lists for the holidays, but we in the employee benefits world make a very different kind of list.  In the rapidly changing world of employee benefits and executive compensation law, a checklist can be particularly helpful to make sure important issues do not fall through the cracks.  Each year we publish an executive compensation checklist, a health and welfare plan checklist, and a qualified retirement plan checklist to help individuals stay apprised of changes in the law, changes that they might need to make to their employee benefits plans, and various notice requirements.  Read More ›

Posted in Employee Benefits, Executive Compensation, Health & Welfare Plans, Health Care Reform, Qualified Retirement Plans | Tagged , , , , , , ,

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