IRS 2018 Benefit Limits

By Candace Fisher, SPHR, Director, Organizational Development/Certified Coach
Published December 5, 2017

The Internal Revenue Service (IRS) has announced 2018 benefit limits. Some maximums have increased over those of 2017.

On October 19, the IRS released 2018 pension limits.  

  • The contribution limit for 401(k), 403(b), and most 457 plans is increased from $18,000 to $18,500.
  • The annual “catch-up” contribution for employees over 50 remains at $6,000 maximum. 

On November 15, the IRS announced 2018 healthcare contribution limits.  

IRS 2018 Benefit Limits

Flexible Spending Accounts (FSA) – In 2018, the FSA contribution limit is rising to $2,650 (up from $2,600 in 2017.) Remember that employers are always allowed to set the maximum an employee can put aside at a rate lower than this amount.

High Deductible Health Plan – For calendar year 2018, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450; the annual limitation for an individual with family coverage under a high deductible health plan is $6,900. 

For calendar year 2018, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.

Qualified Transportation Fringe Benefits – For 2018, the monthly limit on the amount that may be excluded from an employee’s income for qualified parking benefits will be $260 (up from $255 in 2017). The combined monthly limit for transit passes and vanpooling expenses for 2018 will be $260 (up from $255 in 2017).

Management Association members with questions about 2018 benefits can contact the HR Hotline at 800-448-4584 or hotline@hrsource.org

 
  

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