IRS Announces 2018 Increases to Benefit Plan Limits

Written by Joanna Morrow

Joanna Morrow, Principal and Founder of Employer Benefits & Advice, is an employer consultant and advocate who has worked in the employee benefits industry for over two decades. She works diligently to help employers overcome obstacles in their business by sharing her expertise in Human Resources, Benefits & Compensation, Process Mapping, Risk Management and ERISA/DOL/IRS compliance. She is a licensed life and health insurance professional in the State of Arizona and is an active member of the National Association of Health Underwriters (NAHU).

IRS Announces 2018 Increases to Benefit Plan Limits

Many employee benefits are subject to annual dollar limits that are periodically increased for inflation. The Internal Revenue Service (IRS) recently announced cost-of-living adjustments to the annual dollar limits for various benefit and retirement plan limits for 2018. While some of the limits will remain the same, many of the limits will increase for 2018.

The annual limits for the following commonly offered employee benefits will increase for 2018:

  • High deductible health plans (HDHPs) and health savings accounts (HSAs)
  • Health flexible spending accounts (FSAs)
  • Transportation fringe benefit plans
  • 401(k) plans

Check out this easy to use reference guide illustrating the 2018 dollar limits.

 

Health Savings Accounts (HSAs) and High Deductible Health Plan (HDHP) Limits

 

Flexible Spending Account (FSA) Benefits

 

Transportation Fringe Benefits

 

Adoption Assistance Benefits

 

Qualified Small Employer Health Reimbursement Accounts (QSEHRA)

 

401(k) Contributions

 

Action Steps

Employers should update their benefit plan designs and administration to reflect the new limits. Employers may also want to use the annual open enrollment as an opportunity to formally communicate these new benefit plan limits to employees.

For questions related to these new limits, communicating benefits to employees, or the difference between Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs) or other benefit related questions, feel free to email me at [email protected] or call me at 602-903-4047.