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
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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.
