Many employee benefit plans are subject to annual dollar limits that are periodically updated for inflation by the IRS. The following commonly offered employee benefit plans are subject to these limits:
- High deductible health plans (HDHPs) and health savings accounts (HSAs);
- Health flexible spending accounts (FSAs);
- 401(k) plans; and
- Transportation fringe benefit plans.
Increased Limits
- HSA contributions
- HDHP out-of-pocket maximum limit
- Health FSA limit for employee pre-tax contributions
- Health FSA carryover limit
- Monthly limits for transportation fringe benefit plans
- Employees’ elective deferrals to 401(k) plans, pre-tax and Roth
- Tax exclusion for adoption assistance benefits
Unchanged Limits
- Tax exclusion for dependent care FSA benefits*
- Catch-up contributions to an HSA
- HDHP minimum deductible
- Catch-up contributions to a 401(k) plan
