The IRS has announced that the contribution limits for health flexible spending arrangements (health FSAs), qualified small employer health reimbursement arrangements (QSEHRAs), and 401(k) retirement plans will increase in 2018 as follows:
- Health FSAs: The annual dollar limit on employee contributions to employer-sponsored health FSAs will be $2,650(up from $2,600 for 2017).
- QSEHRAs: The total amount of payments and reimbursements by the employer will not be permitted to exceed $5,050 per employee(up from $4,950 for 2017) or $10,250 per family (up from $10,000 for 2017).
- 401(k) Plans: The contribution limit for employees who participate in 401(k) plans will be $18,500 (up from $18,000 for 2017). The catch-up contribution limit for those aged 50 and over will remain unchanged at $6,000.