Increases Coming to Retirement and Welfare Plan Limits in 2018

October 25, 2017 Advisory

On Oct. 19, the Internal Revenue Service announced that some key retirement plan dollar limitations will increase in 2018, including the limit on elective salary deferral contributions on a combined pre-tax and Roth basis, moving from $18,000 to $18,500. Other limits, including the catch-up contribution limit of $6,000, will remain unchanged. The IRS also announced that the limit on salary reduction contributions under a health flexible spending account (FSA) will increase from $2,600 to $2,650 in 2018, and as noted below, key limitations for health savings accounts (HSAs) will increase in 2018. Lastly, for purposes of withholding and paying FICA and FUTA taxes, the Social Security Wage Base is increasing from $127,200 in 2017 to $128,700 in 2018.

Key retirement plan limits for 2018:

Limit

2017

2018

Social Security Wage Base

$127,200

$128,700

Elective Deferral/Roth contribution limit for 401(k), 403(b) and 457 plans

$18,000

$18,500

Catch-up contribution limit for employees aged 50 and over for 401(k), 403(b) and 457 plans

$6,000

$6,000

IRA contribution limit

$5,500

$5,500

IRA catch-up for individuals aged 50 and over

$1,000

$1,000

415 limit for defined contribution plans

$54,000

$55,000

Compensation limit for qualified plans

$270,000

$275,000


Key HSA limits for 2018:

Limit

2017

2018

Annual contribution limit:

Self-only coverage

$3,400

$3,450

Family coverage

$6,750

$6,900

Catch-up contribution (age 55 and over)

$1,000

$1,000

High deductible health plan (HDHP) minimum deductible requirements:

Self-only coverage

$1,300

$1,350

Family coverage

$2,600

$2,700

HDHP annual out-of-pocket maximum:

Self-only coverage

$6,550

$6,650

Family coverage

$13,100

$13,300

These changes will be effective for plan years that begin on or after Jan. 1, 2018.

Contact Us
  • Worldwide
  • Boston, MA
  • Chicago, IL
  • Denver, CO
  • Dublin, Ireland
  • Edwardsville, IL
  • Jefferson City, MO
  • Kansas City, MO
  • Las Vegas, NV
  • London, England
  • Miami, FL
  • New York, NY
  • Orange County, CA
  • Philadelphia, PA
  • Princeton, NJ
  • Salt Lake City, UT
  • St. Louis, MO
  • Washington, D.C.
  • Wilmington, DE
Worldwide
abstract image of world map
Boston, MA
800 Boylston St.
30th Floor
Boston, MA 02199
Google Maps
Boston, Massachusetts
Chicago, IL
100 North Riverside Plaza
Suite 1500
Chicago, IL 60606-1520
Google Maps
Chicago, Illinois
Denver, CO
4643 S. Ulster St.
Suite 800
Denver, CO 80237
Google Maps
Denver, Colorado
Dublin, Ireland
Fitzwilliam Hall, Fitzwilliam Place
Dublin 2, Ireland
Google Maps
Edwardsville, IL
115 N. Second St.
Edwardsville, IL 62025
Google Maps
Edwardsville, Illinois
Jefferson City, MO
101 E. High St.
First Floor
Jefferson City, MO 65101
Google Maps
Jefferson City, Missouri
Kansas City, MO
2345 Grand Blvd.
Suite 1500
Kansas City, MO 64108
Google Maps
Kansas City, Missouri
Las Vegas, NV
7160 Rafael Rivera Way
Suite 320
Las Vegas, NV 89113
Google Maps
Las Vegas, Nevada
London, England
Royal College of Surgeons of England
38-43 Lincoln’s Inn Fields
London, WC2A 3PE
Google Maps
Miami, FL
355 Alhambra Circle
Suite 1200
Coral Gables, FL 33134
Google Maps
Photo of Miami, Florida
New York, NY
7 Times Square, 44th Floor
New York, NY 10036
Google Maps
New York City skyline
Orange County, CA
19800 MacArthur Boulevard
Suite 300
Irvine, CA 92612
Google Maps
Philadelphia, PA
2005 Market Street
29th Floor, One Commerce Square
Philadelphia, PA 19103
Google Maps
Philadelphia, Pennsylvania
Princeton, NJ
100 Overlook Center
Second Floor
Princeton, NJ 08540
Google Maps
Princeton, New Jersey
Salt Lake City, UT
222 South Main St.
Suite 1830
Salt Lake City, UT 84101
Google Maps
Salt Lake City, Utah
St. Louis, MO
7700 Forsyth Blvd.
Suite 1800
St. Louis, MO 63105
Google Maps
St. Louis, Missouri
Washington, D.C.
1717 Pennsylvania Avenue NW
Suite 400
Washington, DC 20006
Google Maps
Photo of Washington, D.C. with the Capitol in the foreground and Washington Monument in the background.
Wilmington, DE
1007 North Market Street
Wilmington, DE 19801
Google Maps
Wilmington, Delaware