As is tradition, we are happy to present our End of Year Plan Sponsor “To Do” Lists. 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 describes annual cost-of-living increases. Parts 3 and 4 will cover qualified plan and executive compensation issues. Each Employee Benefits Update provides a “To Do” List of items to consider taking action on before the end of 2021 or in early 2022. 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.
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Limit on Section 401(k) deferrals
(Section 402(g))
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$19,500
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$19,500
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$20,500
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Dollar limitation for
catch-up contributions
(Section 414(v)(2)(B)(i))
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$6,500
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$6,500
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$6,500
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Limit on deferrals for government and tax-exempt organization deferred compensation plans
(Section 457(e)(15))
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$19,500
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$19,500
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$20,500
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Annual benefit limitation for a defined benefit plan
(Section 415(b)(1)(A))
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$230,000
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$230,000
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$245,000
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Limitation on annual contributions to a defined contribution plan
(Section 415(c)(1)(A))
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$57,000
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$58,000
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$61,000
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Limitation on compensation
that may be considered by
qualified retirement plans
(Section 401(a)(17))
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$285,000
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$290,000
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$305,000
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Dollar amount for the definition of highly compensated employee
(Section 414(q)(1)(B))
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$130,000
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$130,000
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$135,000
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Dollar amount for the definition of a key employee in a top-heavy plan
(Section 416(i)(1)(A)(i))
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$185,000
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$185,000
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$200,000
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Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period
(Section 409(o)(1)(C)(ii))
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$1,150,000
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$1,165,000
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$1,230,000
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SIMPLE retirement
account limitation
(Section 408(p)(2)(E))
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$13,500
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$13,500
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$14,000
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Social Security Taxable Wage Base
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$137,700
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$142,800
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$147,000
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Annual Cost Sharing Limit
(self-only coverage)
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$8,150
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$8,550
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$8,700
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Annual Cost Sharing Limit
(other than self-only coverage)
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$16,300
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$17,100
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$17,400
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HDHP Out-of-Pocket Maximum
(self-only coverage)
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$6,900
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$7,000
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$7,050
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HDHP Out-of-Pocket Maximum
(family coverage)
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$13,800
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$14,000
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$14,100
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Annual HDHP Deductible
(self-only coverage)
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Not less than $1,400
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Not less than $1,400
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Not less than $1,400
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Annual HDHP Deductible
(family coverage)
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Not less than $2,800
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Not less than $2,800
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Not less than $2,800
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Maximum Annual
HSA Contributions
(self-only coverage)
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$3,550
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$3,600
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$3,650
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Maximum Annual
HSA Contributions
(family coverage)
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$7,100
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$7,200
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$7,300
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Maximum HSA Catch-Up Contribution
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$1,000
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$1,000
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$1,000
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Health Flexible Spending
Account Maximum
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$2,750
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$2,750
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$2,850
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