Many employee benefits are subject to annual dollar limits, periodically updated by the IRS to allow for inflation. These include high deductible health plans (HDHPs), health savings accounts (HSAs), health flexible spending accounts (FSAs), 401(k) plans and transportation fringe benefit plans. Here’s a look at what’s changing – and what’s not – next year:
HSA Contribution Limits will increase from $3,400 to $3,450 for individuals ($50 increase) and from $6,750 to $6,900 for families ($150 increase)
The Minimum Deductible for HDHPs will also increase by $50 and $150 for individuals and families, from $1,300 to $1,350 and from $2,600 to $2,650, respectively.
The HDHP Out-of-pocket Maximum increases by $100 for individuals ($6,550 to $6,650) and by $200 for families ($13,100 to $13,300).
The Out-of-pocket Maximum on Essential Health Benefits (for non-grandfathered plans) will increase from $7,150 to $7,350 for individuals ($200 increase) and from $14,300 to $14,700 for families ($400 increase).
The limit on employee pre-tax contributions to a Health FSA will rise by $50, from $2,600 to $2,650.
The limit on employee elective 401(k) contributions rises by $500 in 2018, from $18,000 to $18,500.
Finally, the monthly limits for Transportation Fringe Benefits for both transit pass/vanpooling and parking will increase by $5, from the current $255 to $260.
What won’t change in 2018? The tax exclusion for a Dependent Care FSA remains the same, as do the limits on catch-up contributions for both 401(k) plans and HSAs.
Questions about benefits or the changes for 2018? Contact Consolidated Insurance.