2018 Annual Contribution Limits.
The Internal Revenue Service released the 2018 annual contribution limits related to Flexible Spending Accounts (FSA), Health Savings Accounts (HSA) and all Qualified Retirement Plans.
Please see below for the changes to current limits in place and consider sending to your employees asking them to take action if they would like to take advantage of these increased contribution limits.
|Parking||$260 per month||$255 per month|
|Transit||$260 per month||$255 per month|
|Catch-up contribution (age 55 or older)||$1,000||$1,000|
Qualified Retirement Plans
|401(k) employee deferrals||$18,500||$18,000|
|Catch-up contribution (age 50)||$6,000||$6,000|
|Defined contribution dollar limit||$55,000||$54,000|
|Annual compensation limit||$275,000||$270,000|
|HCE income limit||$120,000||$120,000|
|Key employee officer||$175,000||$175,000|
The announcements from the IRS are as follows:
Tandem HR is a Chicago PEO providing custom HR solutions to hundreds of small and mid-sized businesses looking to build exceptional workplaces. Tandem HR also helps clients save time and money while growing their business by taking on the administrative tasks associated with human resources, benefits, payroll, tax administration, regulatory compliance and risk management.