iOn Oct. 19, the Internal Revenue Service announced that some key retirement plan dollar limitations will increase in 2018, including the limit on elective salary deferral contributions on a combined pre-tax and Roth basis, moving from $18,000 to $18,500. Other limits, including the catch-up contribution limit of $6,000, will remain unchanged. The IRS also announced that the limit on salary reduction contributions under a health flexible spending account (FSA) will increase from $2,600 to $2,650 in 2018, and as noted below, key limitations for health savings accounts (HSAs) will increase in 2018. Lastly, for purposes of withholding and paying FICA and FUTA taxes, the Social Security Wage Base is increasing from $127,200 in 2017 to $128,700 in 2018.
Key retirement plan limits for 2018:
|
Limit |
2017 |
2018 |
|
Social Security Wage Base |
$127,200 |
$128,700 |
|
Elective Deferral/Roth contribution limit for 401(k), 403(b) and 457 plans |
$18,000 |
$18,500 |
|
Catch-up contribution limit for employees aged 50 and over for 401(k), 403(b) and 457 plans |
$6,000 |
$6,000 |
|
IRA contribution limit |
$5,500 |
$5,500 |
|
IRA catch-up for individuals aged 50 and over |
$1,000 |
$1,000 |
|
415 limit for defined contribution plans |
$54,000 |
$55,000 |
|
Compensation limit for qualified plans |
$270,000 |
$275,000 |
Key HSA limits for 2018:
|
Limit |
2017 |
2018 |
|
Annual contribution limit: |
|
|
|
Self-only coverage |
$3,400 |
$3,450 |
|
Family coverage |
$6,750 |
$6,900 |
|
Catch-up contribution (age 55 and over) |
$1,000 |
$1,000 |
|
High deductible health plan (HDHP) minimum deductible requirements: |
|
|
|
Self-only coverage |
$1,300 |
$1,350 |
|
Family coverage |
$2,600 |
$2,700 |
|
HDHP annual out-of-pocket maximum: |
|
|
|
Self-only coverage |
$6,550 |
$6,650 |
|
Family coverage |
$13,100 |
$13,300 |
These changes will be effective for plan years that begin on or after Jan. 1, 2018.
