IRS 2017 Plan Limits
On October 27, 2016, the IRS announced various limits and thresholds applicable to employee benefit plans for 2017. Section 415 of the Internal Revenue Code requires these limits to be adjusted annually due to cost-of-living increases. The majority of these limits remain unchanged from the 2016 limits, but there were increases in some instances. Earlier this year, the IRS also announced the 2017 inflation-adjusted limits for health savings accounts (“HSAs”), including the maximum annual HSA contribution, the minimum annual deductible for a high-deductible health plan (“HDHP”), and the maximum annual out-of-pocket expense for an HDHP.
Ensuring that your employee benefits plans comply with the Employee Retirement Income Security Act of 1974 (“ERISA”) just became more important. That is because the cost of noncompliance just increased (and in some instances, the increases are significant). On June 30, 2016, the U.S. Department of Labor (the “DOL”) issued an interim final rule increasing the penalties for certain violations of ERISA. The interim final rule is effective for penalties assessed after August 1, 2016 if the corresponding violation occurred after November 2, 2015.
In this blog, Nutter's Executive Compensation and Employee Benefits attorneys will provide updates on key developments and offer practical tips and best practices relating to executive compensation, employee benefits, and corporate governance matters.