A number of employee benefits are subject to annual dollar limits, which are periodically increased for inflation. The IRS recently announced its cost-of-living adjustments to these benefit limits, and–while some limits remain unchanged–many of them will increase in 2018.
A few commonly offered employee benefits that will see their annual limits increase in the coming year include:
- 401(k) plans
- Health-related flexible spending accounts (FSAs)
- High deductible health plans (HDHPs)
- Health savings accounts (HSAs)
- Transportation fringe benefit plans
Because open enrollment is upon us, it’s important that employees be made aware of any changes to their benefit plan limits. It’s also crucial to make sure that your benefit plan aligns with the new limits and is administered accordingly. The graphics below illustrate a few crucial limit increases, as well as the amount of change compared with the previous year.
This information, however, is not exhaustive. So make sure you’re up-to-date on the applicable limits for all the benefits you offer. And, as always, contact us if we can help you sort out the latest changes.
