Understanding Employee Benefits

Social Security Administration Corrects and Updates Wage Base for 2018

By | December 1, 2017

On November 27, 2017, the Social Security Administration (SSA) announced that it is adjusting the maximum earnings subject to the Social Security tax for 2018 to $128,400.  As we have previously posted, the SSA had announced that it would increase the maximum earnings to $128,700.  The SSA made the adjustment after receiving a large number of corrected W-2s received in October 2017 by a national payroll provider.

Our previous post has been updated to reflect the change to the cost-of-living adjustment and is reproduced below.

2017 2018
Elective Deferral Limit 401(k), 403(b), 457(b) $18,000 $18,500
Catch-up Limit (age 50+) $6,000 $6,000
Defined Benefit Limit $215,000 $220,000
Defined Contribution Limit $54,000 $55,000
Dollar Limit – Highly Compensated Employees $120,000 $120,000
Officer – Key Employee $175,000 $175,000
Annual Compensation Limit $270,000 $275,000
SEP Eligibility Compensation Limit $600 $600
SIMPLE Deferral Limit $12,500 $12,500
SIMPLE Catch-up Limit (age 50+) $3,000 $3,000
Social Security Taxable Wage Base $127,200 $128,400
ESOP 5 Year Distribution Extension Account Minimum $1,080,000 $1,105,000
Additional Amount for 1-Year Extension $215,000 $220,000
HSA (Self/Family) Maximum Annual Contribution $3,400/$6,750 $3,450/$6,900
HDHP Minimum Deductible Limits $1,300/$2,600 $1,350/$2,700
Out-of-pocket Expense Annual Maximum $6,550/$13,100 $6,650/$13,300
Medical FSA $2,600 $2,650

 

Contact Mark Wilkins for more information.