Source: https://news.leavitt.com/employee-benefits-compliance/2017-dollar-amounts-colas-benefit-plans-taxes/
Timestamp: 2020-01-24 22:35:09
Document Index: 512399720

Matched Legal Cases: ['§ 125', '§ 416', '§ 2230', '§ 402', '§ 401', '§ 415', '§ 223', '§ 223', '§ 23', '§ 137', '§ 132', '§ 63', '§ 151']

2017 Dollar Amounts and COLAs for Benefit Plans and Taxes - Leavitt Group News & Publications
2017 Dollar Amounts and COLAs for Benefit Plans and Taxes
Lisa Klinger, J.D. November 1, 2016, 3:13 pm November 1, 2016 Comments Off on 2017 Dollar Amounts and COLAs for Benefit Plans and Taxes
The IRS and Social Security Administration each year announce the cost-of-living adjustments affecting tax and employee benefits dollar amounts for the upcoming calendar year. Some highlights for 2017 (& 2016) are listed below. Note that the annual cap on employee pre-tax contributions to a Health FSA (IRC § 125) has increased to $2,600.
Key Employee, Officer – IRC § 416(i)(1)(A)(i) $175,000 $170,000
Social Security Taxable Wage Base – § 2230 of Social Security Act $127,200 $118,500
Maximum Elective Deferrals (annually) – IRC § 402(g)(1) $18,000 $18,000
Annual Compensation – IRC § 401(a)(17) $270,000 $265,000
Annual Defined Contribution Limits – IRC § 415(c)(1)(A) $54,000 $53,000
Health Savings Accounts (H.S.A.s): IRC § 223(b)(2)(A)
Maximum Annual Contribution – Individual Coverage $3,400 $3,350
Maximum Annual Contribution – Family Coverage $6,750 $6,750
High Deductible Health Plan (HDHP): IRC § 223(c)(2)(A)
Maximum Out-of-Pocket Expenses – Individual Coverage $6,550 $6,550
Maximum Out-of-Pocket Expenses – Family Coverage $13,100 $13,100
Maximum Annual Pre-tax Contribution through 125 Plan:
HFSA, regardless of marital status $2,600 $2,550
Adoption Tax Credit (phases out between AGI of $203,540 and $243,540) – IRC § 23 $13,570 $13,460
Adoption Assistance, Maximum Annual Pre-tax Contribution through 125 Plan – IRC § 137 $13,570 $13,460
Qualified Transportation Benefits: IRC § 132(f)
Parking – monthly maximum $255 $255
Vanpooling & Transit – monthly maximum $255 $255
Personal Income Tax Filing Amounts IRC § 63(c)(2)
Dependent Exemption – IRC § 151(d) $ 4,050 $ 4,050
Standard Deduction, Married Filing Jointly (MFJ) $12,700 $12,600
Standard Deduction, Head of Household $ 9,350 $ 9,300
Standard Deduction, Single or Married Filing Separately $ 6,350 $ 6,300
Medicare Part B Premium (existing “hold harmless” enrollees) – estimated $105.20 $104.90
Medicare Part B Deductible $ 204 $166
Maximum tax credit phases out if employer’s average annual wages are in excess of this dollar amount. Rev. Proc. 2016-55 $26,200 $25,900
Annual 5000A(c) penalty for individual not having “minimum essential coverage” (MEC): greater of dollar amount or a percentage of modified adjusted gross income (MAGI) – file Form 8965 if a tax is due $695 or 2.5% $395 or 2.0%
Annual 4980H(a) penalty for large employer not offering MEC to at least 95% (70% in 2015) of full-time employees. Penalty amount is times total number of full-time employees minus 30 (minus 80 in 2015) Not yet announced $2,160
Annual 4980H(b) penalty for large employer not offering affordable minimum value coverage to all full-time employees. Penalty amount is per each full-time employee who qualifies for a subsidy to buy insurance in the marketplace. Not yet announced $3,240
Social Security Administration announcement of 2017 SS changes
IRS announcement on Retirement plan COLAs & $ limits for 2017
IRS announcement “In 2017, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged” (Oct. 25, 2016)
Rev. Proc. 2016-55: This revenue procedure sets forth numerous inflation-adjusted tax Code amounts for 2017
Rev Proc 2016-28: This revenue procedure sets forth inflation-adjusted amounts for H.S.A.s and HDHPs for 2017