Benefits Notes |

Employee benefits are an important part of every employees' total compensation package. The continuously evolving landscape in the areas of health care reform, retirement plan design, and executive compensation makes it difficult for employee benefits professionals to keep up with relevant developments. The employee benefits attorneys at Stinson Leonard Street provide human resources professionals, plan fiduciaries, actuaries, accountants, and others in the industry with practical and cost-effective assistance as they navigate through the complex laws, regulations and guidance that govern employee benefits plans. This blog highlights key developments in the employee benefits field and items of interest to our clients. Our Bloggers →

Benefits Notes Post

Social Security Administration Corrects and Updates Wage Base for 2018

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