The IRS has released the cost of living adjustments that affect the dollar limits for various retirement plans and health & welfare plans for the 2018 tax year. Many of the limits have increased from 2017 to 2018 due to an increase in the Consumer Price Index on which these limits are based.

Please contact your Nyhart consultant for additional information or 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
QSEHRA Reimbursement Limit
Single $4,950 $5,050
Family $10,000 $10,250
Employer Provided Adoption Assistance Programs $13,570 $13,840
Transportation Fringe Programs
Mass Transit Expenses $255/month $260/month
Parking Expenses $255/month $260/month

This information has been updated under the new tax law.Ā  Click here to view updated information.