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 |