2018 Cost-of-Living Adjustments

Article Excerpt:

The IRS issued Notice 2017-64 announcing cost-of-living adjustments affecting dollar limitations for tax-qualified retirement plans and other retirement-related items for the 2018 tax year. Revenue Procedure 2017-58 provides cost-of-living adjustments to dollar limitations affecting health and welfare plans.

Plan sponsors should review the cost-of-living adjustments (COLAs) to determine what, if any, changes need to be communicated to employees via orientation meetings and enrollment forms. In addition, the amounts may need to be updated and/or inputted into the payroll or other Human Resources information system used by the employer to monitor contributions made to an employee benefit plan.