IRS sets 2018 contribution limits for tax-savings accounts

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