Below is a summary of the 2018 compared to 2017 limits regarding a variety of retirement and healthcare limitations imposed by the IRS. There are no significant changes in the dollar amounts for 2018, but some have changed. Every dollar contributed to one of the plans below is a pre-tax approach to enhance a taxpayers’ retirement funds and healthcare related funds that will be spent in the current and/or future years. Somerset wants to make sure our clients are maximizing such enhancements on a pre-tax basis. Don’t hesitate to contact your Somerset advisor with any questions.
| 2017 | 2018 | |||
| RETIREMENT LIMITATIONS | ||||
| 401(k) / 403(b) / 457 Plan Maximum Elective Deferral | $18,000 | $18,500 | ||
| Qualified Plan Compensation Limit | $270,000 | $275,000 | ||
| Catch-Up Contribution Limit for all plans other than 401(k)(11) and 408(p) plans | $6,000 | no change | ||
| Catch-up Contribution Limit for 401(k)(11) and 408(p) | $3,000 | no change | ||
| Highly Compensated Employee Definition | $120,000 | no change | ||
| Top Heavy Key Employee Definition | $175,000 | no change | ||
| Defined Contribution Annual Additions Limit | $54,000 | $55,000 | ||
| Defined Benefit Annual Benefit Limit | $215,000 | $220,000 | ||
| Social Security Taxable Wage Base | $127,200 | $128,700 | ||
| FLEXIBLE SPENDING ACCOUNTS (FSAs) | ||||
| Health FSA Limit | $2,600 | $2,650 | ||
| Dependent Care Account | ||||
| Married individuals, filing separately | $2,500 | no change | ||
| Households | $5,000 | no change | ||
| HEALTH SAVINGS ACCOUNT LIMITATIONS (HSAs) | ||||
| HSA Contribution Limits | ||||
| Individual | $3,400 | $3,450 | ||
| Family | $6,750 | $6,900 | ||
| Catch-up | $1,000 | no change | ||
| HDHP Out of Pocket Maximum | ||||
| Individual | $6,550 | $6,650 | ||
| Family | $13,100 | $13,300 | ||
| HDHP Minimum Annual Deductible | ||||
| Individual | $1,300 | $1,350 | ||
| Family | $2,600 | $2,700 | ||
