Snell & Wilmer
Southwest Benefits Update
 
     

November 8, 2019

2019 End of Year Plan Sponsor “To Do” List (Part 2)
Annual Cost of Living Adjustments

As 2019 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. Each Employee Benefits Update provides a “To Do” List of items to consider taking action on before the end of 2019 or in early 2020. 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

 

2018

2019

2020

Limit on Section 401(k) deferrals (Section 402(g))

$18,500

$19,000

$19,500

Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i))

$6,000

$6,000

$6,500

Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15))

$18,500

$19,000

$19,500

Annual benefit limitation for a defined benefit plan (Section 415(b)(1)(A))

$220,000

$225,000

$230,000

Limitation on annual contributions to a defined contribution plan (Section 415(c)(1)(A))

$55,000

$56,000

$57,000

Limitation on compensation that may be considered by qualified retirement plans (Section 401(a)(17))

$275,000

$280,000

$285,000

Dollar amount for the definition of highly compensated employee (Section 414(q)(1)(B))

$120,000

$125,000

$130,000

Dollar amount for the definition of a key employee in a top-heavy plan (Section 416(i)(1)(A)(i))

$175,000

$180,000

$185,000

Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period (Section 409(o)(1)(C)(ii))

$1,105,000

$1,130,000

$1,150,000

SIMPLE retirement account limitation (Section 408(p)(2)(E))

$12,500

$13,000

$13,500

Social Security Taxable Wage Base

$128,700

$132,900

$137,700



Health & Welfare Plan Dollar Limits

 

2018

2019

2020

Annual Cost Sharing Limit (self-only coverage)

$7,350

$7,900

$8,150

Annual Cost Sharing Limit (other than self-only coverage)

$14,700

$15,800

$16,300

HDHP Out-of-Pocket Maximum (self-only coverage)

$6,650

$6,750

$6,900

HDHP Out-of-Pocket Maximum (family coverage)

$13,300

$13,500

$13,800

Annual HDHP Deductible (self-only coverage)

Not less than $1,350

Not less than $1,350

Not less than $1,400

Annual HDHP Deductible (family coverage)

Not less than $2,700

Not less than $2,700

Not less than $2,800

Maximum Annual HSA Contributions (self-only coverage)

$3,450

$3,500

$3,550

Maximum Annual HSA Contributions (family coverage)

$6,900

$7,000

$7,100

Maximum HSA Catch-Up Contribution

$1,000

$1,000

$1,000

Health Flexible Spending Account Maximum

$2,650

$2,700

$2,750



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