2018 End of Year Plan Sponsor “To Do” List (Part 2) - Annual Cost of Living Adjustments

Snell & Wilmer

As 2018 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 qualified plan and executive compensation issues, respectively. Each Employee Benefits Update provides a “To Do” List of items to consider taking action on before the end of 2018 or in early 2019. 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.

Part 2 - Annual Cost of Living Adjustments “To Do” List

Qualified Retirement Plan Dollar Limits
  2017 2018 2019
Limit on Section 401(k) deferrals
(Section 402(g))
$18,000 $18,500 $19,000
Dollar limitation for catch-up contributions
(Section 414(v)(2)(B)(i))
$6,000 $6,000 $6,000
Limit on deferrals for government and
tax-exempt organization deferred
compensation plans
(Section 457(e)(15))
$18,000 $18,500 $19,000
Annual benefit limitation for a
defined benefit plan
(Section 415(b)(1)(A))
$215,000 $220,000 $225,000
Limitation on annual contributions
to a defined contribution plan
(Section 415(c)(1)(A))
$54,000 $55,000 $56,000
Limitation on compensation that may be considered by qualified retirement plans
(Section 401(a)(17))
$270,000 $275,000 $280,000
Dollar amount for the definition
of highly compensated employee
(Section 414(q)(1)(B))
$120,000 $120,000 $125,000
Dollar amount for the definition of a key employee in a top-heavy plan
(Section 416(i)(1)(A)(i))
$175,000 $175,000 $180,000
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 $1,130,000
SIMPLE retirement account limitation
(Section 408(p)(2)(E))
$12,500 $12,500 $13,000
Social Security Taxable Wage Base $127,200 $128,700 $132,900


 

Health & Welfare Plan Dollar Limits
  2017 Limit 2018 Limit 2019 Limit
Annual Cost Sharing Limit
(self-only coverage)
$7,150 $7,350 $7,900
Annual Cost Sharing Limit
(other than self-only coverage)
$14,300 $14,700 $15,800
HDHP Out-of-Pocket Maximum
(self-only coverage)
$6,550 $6,650 $6,750
HDHP Out-of-Pocket Maximum
(family coverage)
$13,100 $13,300 $13,500
Annual HDHP Deductible
(self-only coverage)
Not less than $1,300 Not less than $1,350 Not less than
$1,350
Annual HDHP Deductible
(family coverage)
Not less than $2,600 Not less than $2,700 Not less than
$2,700
Maximum Annual HSA Contributions
(self-only coverage)
$3,400 $3,450 $3,500
Maximum Annual HSA Contributions
(family coverage)
$6,750 $6,900 $7,000
Maximum HSA Catch-Up Contribution $1,000 $1,000 $1,000
Health Flexible Spending Account Maximum $2,600 $2,650 Not yet announced

In addition to the above health and welfare plan limit adjustments, note that the PCORI fee will increase from $2.39 to $2.45 per covered life for plan years ending on or after October 1, 2018 and before October 1, 2019. The PCORI fee will no longer apply for plan years ending on or after October 1, 2019.

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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