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The ERISA Outline Book - Dollar Limits

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The following entries provide the applicable dollar limits in effect for 2018, referenced to the identified Parts of Section II of Chapter 17 of The ERISA Outline Book, except where otherwise noted.

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Part A: Compensation dollar limitation (IRC §401(a)(17)

  • $275,000

Part B: Elective deferral limitation (IRC §§401(a)(30) and 402(g))

  • $18,500

Part C: ESOP distribution restrictions (IRC §409(o))

  • Minimum balance - $1,105,000
  • Increment amount - $220,000

Part D: Excess retirement distributions/accumulations (IRC§4980A)

  • Repealed

Part E: Compensation requirements under HCE definition (IRC §414(q))

  • $120,000

Part F: Compensation requirements under key employee definition (IRC §416(i)(1))

  • $175,000 (officer test), $150,000 (1% owner test - not subject to COLAs)

Part G: Section 415 limits

  • DC limit - $55,000
  • DB limit - $220,000
  • 1.0197 (factor for DB copensation limit for participants who separate from service before 2017)

Part H: Compensation requirement for participation in SEPs (IRC §408(k))

  • $600

Part I: Annual limit on elective contributions under SIMPLE Plans (IRC §408(p)(2) and IRC §401(k)(11))

  • $12,500

Part J: Annual deferral limit under section 457 plans (IRC §457(b))

  • $18,500

Part K: Adjusted PBGC flat-rate premium/adjusted PBGC variable rate premium/maximum PBGC-guaranteed monthly benefit from terminated plan

  • Flat rate premiums - single-employer plans: $74 for 2018, $80 for 2019; multiemployer plans: $28 for 2018, $29 for 2019
  • Variable rate premiums (VRP) - $38 per $1,000 of underfunding for 2018, $43 per $1,000 of underfunding for 2019; cap on VRP - $523 for 2018, $541 for 2019
  • Maximum guaranteed benefit: $65,045 annually/$5,420.42 monthly for 2018; $67,295.40/$5,697.95 monthly for 2019

Part L: Catch-up contribution limits (IRC §414(v))

  • $6,000 ($3,000 for SIMPLE plans)

Part M: IRA contribution limits (IRC §§219, 408 and 408A)

  • $5,500 ($1,000 catch-up limit)
  • AGI phase-outs for IRA deduction for active participants (published in Section IX, Part A.2.b.1) and A.2.b.3)a), of Chapter 12)
    • Married filing jointly or qualifying widow(er): $101,000-$121,000
    • Single or head of household: $63,000-$73,000
    • Married filing separately: $0-$10,000 (not subject to COLAs)
    • Non-active participant married to active participant, based on couple's AGI: $189,000-$199,000
  • AGI phase-outs for Roth contribution eligibility (published in Section X, Part A.3.b., of Chapter 12)
    • Married filing jointly or qualifying widow(er): $189,000-$199,000
    • Single or head of household: $120,000-$135,000
    • Married filing separately $0-$10,000 (not subject to COLAs)

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Part N: Health Savings Accounts (HSAs)

  • Annual contribution limit:
    • Self-only coverage: $3,450 ($3,500 for 2019)
    • Family coverage: $6,900* ($7,000 for 2019) [* See Rev. Proc. 2018-27 for relief for 2018 for taxpayers relying on the $6,900, in spite of legislative changes that lowered this limit to $6,850]
  • Annual minimum deductible for high deductible health plan:
    • Self-only coverage: $1,350 ($1,350 for 2019)
    • Family coverage: $2,700 ($2,700 for 2019)
  • Maximum out-of-pocket expenses for high deductible health plan:
    • Self-only coverage: $6,650 ($6,750 for 2019)
    • Family coverage: $13,300 ($13,500 for 2019)
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Part O: Archer Medical Savings Accounts (MSAs)

  • Annual minimium deductible for high deductible plan:
    • Self-only coverage: $2,300
    • Family coverage: $4,600
  • Annual maximum deductible for high deductible health plan:
    • Self-only coverage: $3,450
    • Family coverage: $6,850
  • Maximum out-of-pocket expenses for high deductible health plan:
    • Self-only coverage: $4,600
    • Family coverage: $8,400
 

Part P: Saver’s Credit (IRC §25B)

  • AGI brackets for 50% credit:
    • Married filing jointly: $0-$38,000
    • Head of household: $0-$28,500
    • Other taxpayers: $0-$19,000
  • AGI brackets for 20% credit:
    • Married filing jointly: $38,001-$41,000
    • Head of household: $28,501-$30,750
    • Other taxpayers: $19,001-$20,500
  • AGI brackets for 10% credit:
    • Married filing jointly: $40,101-$63,000
    • Head of household: $30,751-$47,250
    • Other taxpayers: $20,501-$31,500
  • AGI above high end of 10% credit bracket entitled to $0 credit
 

Part Q: Penalty on Late Form 1099-Rs

  • For returns due in 2019 for 2018 taxable years
    • General penalty - $270
    • If corrected within 30 days - $50
    • If corrected after 30 days but no later than August 1 - $100
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Section VIII, Part B.1.b.4)d)ii), of Chapter 3B: Excess Compensation Threshold under IRC §430(c)(7)(D)(i)(II) (DB plans subject to the special amortization election under IRC §430(c)(2)(D))

  • $1,115,000 (2017); N/A for 2018
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Appendix A of Chapter 10: Taxable Wage Base

  • $128,400

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