Benefit Plan Limits for 2018

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

Employers should update their benefit plan designs for the new limits and also make sure that their plan administration will be consistent with the new limits in 2018. Employers may also want to communicate the new benefit plan limits to employees during annual open enrollment.

Health Savings Account 2018 Contribution Limits

  • Self-only high deductible health plan (HDHP) coverage—$3,450
  • Family HDHP coverage—$6,900
  • Catch-up contributions*—$1,000

HDHP 2018 Limits

  • Self-only coverage minimum deductible—$1,350
  • Family coverage minimum deductible—$2,700
  • Self-only coverage out-of-pocket maximum (OOPM)—$6,650
  • Family coverage OOPM—$13,300

Flexible Spending Account (FSA) 2018 Contribution Limits

  • Health FSA—$2,650
  • Dependent care FSA*—$5,000 ($2,500 if married and filing taxes separately)

401(k) 2018 Contribution Limits

  • Employee elective deferrals—$18,500
  • Catch-up contributions—$6,000


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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.