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This post has been updated as of June 7, 2018, to reflect the revised maximum annual HSA contribution limit for family coverage set out in Revenue Procedures 2018-18 and 2018-27.
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
|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
|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*|
|Maximum HSA Catch-Up Contribution||$1,000||$1,000|
|Health Flexible Spending Account Maximum||$2,600||$2,650|
* The maximum annual HSA contribution for family coverage was reduced from $6,900 to $6,850 by Revenue Procedure 2018-18. Read More ›
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The Supreme Court recently decided a case that eliminates the “presumption of prudence” for plan fiduciaries relating to their investment in employer stock in retirement plans. In Fifth Third Bancorp v. Dudenhoeffer, the Supreme Court determined that fiduciaries of an employee stock ownership plan (“ESOP”) are not entitled to a presumption of prudence. Rather, the ESOP fiduciaries must comply with same standard of prudence that applies to all ERISA fiduciaries, except that an ESOP fiduciary is under no duty to diversify the ESOP’s investments.
In its decision, the Supreme Court provided a roadmap for the lower courts in applying the pleading standard. Read More ›
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