Internal Revenue Service released the 2018 annual contribution limits

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.


Limit 2018 2017
Medical reimbursement $2,650 $2,600
Dependent care $5,000 $5,000
Parking $260 per month $255 per month
Transit $260 per month $255 per month


Limit 2018 2017
Individual $3,450 $3,400
Family $6,900 $6,750
Catch-up contribution (age 55 or older) $1,000 $1,000


Qualified Retirement Plans
Limit 2018 2017
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:

If you have questions or concerns about these limits, contact Tandem HR today at 630.928.0510 or


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.