IRS sets 2018 contribution limits for tax-savings accounts
In a series of recent releases, the IRS announced 2018 contribution limits for multiple tax provisions. Among the most popular are adjustments for Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) and pension plan and 401(k) accounts. In all instances, the limits were increased to deliver greater tax-saving relief for account holders.
Each October, the IRS determines whether retirement and other account dollar limits warrant a cost-of-living increase. Most recently the cost-of-living index increased by 2.2% for the 12 months ending in September.
| Flexible Spending Account (FSA) Limits | 2018 | 2017 |
| Individual | $2,650 | $2,600 |
| Health Savings Account (HSA) Limits | 2018 | 2017 |
| Self-only contribution (employee + employer) | $3,450 | $3,400 |
| Family contribution (employee + employer) | $6,900 | $6,750 |
| HSA catch-up contribution (55 or older) | $1,000 | $1,000 |
| Self-only HDHP minimum deductible | $1,350 | $1,300 |
| Family HDHP minimum deductible | $2,700 | $2,600 |
| Self-only HDHP maximum out-of-pocket | $6,650 | $6,550 |
| Family HDHP maximum out-of-pocket | $13,300 | $13,100 |
| Pension Plan and 401(k) Limits | 2018 | 2017 |
| 401(k)/403(b) deferral | $18,500 | $18,000 |
| 415(b) annual benefit under a defined benefit | $55,000 | $54,000 |
| 401(k) catch-up contribution (50 or older) | $6,000 | $6,000 |
| 414(q) highly-compensated employee | $120,000 | $120,000 |
For more information, contact Broker Source at 913.333.3380
News Type:
Compliance Corner