As 2017 comes to an end, we are happy to present our traditional End of Year Plan Sponsor “To Do” Lists. This year, we are publishing our “To Do” Lists in four separate Employee Benefits Updates. Part 1 covered year-end health and welfare plan issues. This Part 2 highlights annual cost-of-living increases. Parts 3 and 4 will cover executive compensation and qualified plan issues. Each Employee Benefits Update provides a “To Do” List of items to consider taking action on before the end of 2017 or in early 2018. As always, we appreciate your relationship with Snell & Wilmer and hope that these “To Do” Lists can help focus your efforts over the next few months.
This List does not address the various health care and tax reform proposals that have been the subject of debate in 2017. As of the date of this Employee Benefits Update, no significant changes have been made to the Affordable Care Act (“ACA”) or the Internal Revenue Code since President Trump took office. When, and if, changes are made, we will publish additional newsletters and blogs highlighting those changes.
Part 2 - Annual Cost of Living Adjustments “To Do” List
|
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 |
|
Maximum HSA Catch-Up Contribution |
$1,000 |
$1,000 |
|
Health Flexible Spending Account Maximum |
$2,600 |
$2,650 |
