Tag Archives: limits

You can increase your Flexible Spending Contribution…

Employees can sock away another $50 in their flexible spending accounts next year.

The IRS announced that the annual contribution limit to FSAs will be $2,700 in 2019, up from the 2018 limit of $2,650. The increase also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts.

For a dependent care FSA, the 2019 contribution limit for an individual who is married but filing jointly is $2,500. For married couples filing jointly or single parents filing as head of household, the limit is $5,000. That limit is not changed from 2018.

HSA and FSA Limits for 2018 announced

FLEXIBLE SPENDING ARRANGEMENTS (FSAs)
Salary Reduction Annual Limit
Employee contributions to employer-sponsored health flexible spending arrangements (FSAs) will increase to $2,650 (up $50 from 2017).

2015 2016 2017 2018
Salary Reduction Annual Limit $2,550 $2,550 $2,600 $2,650

 
HEALTH SAVINGS ACCOUNTS (HSAs)
Annual Contribution Limitation
Self-only coverage under a high deductible health plan is $3,450 (up $50 from 2017). Family coverage under a high-deductible health plan is $6,900 (up $150 from 2017).

Deductibles 
For calendar year 2018, a “high-deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,650 for self-only coverage (up $100 from 2017) or $13,300 (up $200 from 2017) for family coverage.

2015 2016 2017 2018
Minimum deductible amounts for the qualifying high-deductible health plan (HDHP)
Individual coverage $1,300 $1,300 $1,300 $1,350
Family coverage $2,600 $2,600 $2,600 $2,700
Maximum contribution levels
Individual coverage $3,350 $3,350 $3,400 $3,450
Family coverage $6,650 $6,750 $6,750 $6,900
Catch up allowed for those 55 and over $1,000 $1,000 $1,000 $1,000
Maximums for HDHP out-of-pocket expenses
Individual coverage $6,450 $6,550 $6,550 $6,650
Family coverage $12,900 $13,100 $13,100 $13,300


QUALIFIED SMALL EMPLOYER HEALTH REIMBURSEMENT ARRANGEMENTS (QSEHRAs) 
For tax year 2018, to qualify as a QSEHRA, the total amount of payments and reimbursements cannot exceed $5,050 per employee (up from $4,950 for 2017) or $10,250 per family (up from $10,000 for 2017).
 

2016 2017 2018
Individual coverage $4,950 $4,950 $5,050
Family coverage $10,000 $10,050 $10,250

IRS Announces 2018 Contribution Limits

Participant limits- 401(k), 403(b) plans-                                      $18,500 (from $18,000)

Catch up for these plans, over age 50                                              $ 6,000 (no change)

SIMPLE Participant Limit                                                                 $12,500 (no change)

Annual Benefit Limit                                                                           $220,000

Defined Contribution Limit                                                                $55,000 (from $54,000)

TopHeavy Key Employee                                                                    $175,000

Highly Compensated Employee                                                          $120,000

IRA Limit                                                                                                 $5,500 (unchanged)

IRA Catchup                                                                                             $1,000

 

 

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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA.
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