2017 End of Year Plan Sponsor “To Do” List (Part 2) Annual Cost of Living Adjustments

Snell & Wilmer

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

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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