On October 19, 2017 the Internal Revenue Service (IRS) announced (see Revenue Procedure 2017-58) the dollar limitation on employee salary reductions for contributions to health flexible spending accounts; the monthly limitation regarding commuter accounts and contribution limits and thresholds for HSA’s.
Cafeteria Plan Limits and Thresholds
|Flexible Spending Accounts (FSA)|
|Health FSA Max Election||$2,650||$2,600|
|Dependent Care FSA Max Election||$5,000||$5,000|
|Health Savings Accounts (HSAs)|
|HDHP Min. Annual Deductible - Single||$1,350||$1,300|
|HDHP Min. Annual Deductible - Family||$2,700||$2,600|
|HDHP Out of Pocket Max - Single||$6,650||$6,550|
|HDHP Out of Pocket Max - Family||$13,300||$13,100|
|HSA Max Contribution Limit - Single||$3,450||$3,400|
|HSA Max Contribution Limit - Family||$6,850**||$6,750|
|HSA Catch-Up Contribution Limit||$1,000||$1,000|
**Note this amount changed from $6900 too $6850 as of 3/5/2018 as a result of the tax reform law (P.L. 115-97) that changed the annual inflation adjustment factor from the Consumer Price Index (CPI) to a new factor known as ‘chained CPI’. This change was anticipated to slow the rate of changes in all programs under the tax code, including HSAs. For further information, visit the published Internal Revenue Bulletin (IRB) 2018-10 that contains Revenue Procedure (Rev. Proc.) 2018-19.