Setrics Tracker
Health and Welfare

IRS Announces 2018 Cost-of-Living Adjustments for Welfare Benefit Plans

The IRS issued Revenue Procedure 2017-58 which provides the 2018 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of welfare benefit and fringe benefit plans, the most applicable adjustments announced in Revenue Procedure 2017-58 are listed in the following table:

Cafeteria Plan Limits and Thresholds
 
Health FSAs 2018 (new) 2017 (old)
Maximum Health FSA Salary Reductions $2,650 $2,600
     
Adoption Assistance 2018 (new) 2017 (old)
Maximum Exclusion for Employer-Provided Adoption Assistance $13,840 $13,570
Adoption Tax Credit Limit $13,840 $13,570
Maximum Exempt from Phased Reduction of Exclusion $207,580 $203,540
Maximum Allowable for Exclusion and Credit $247,580 $243,540
     
Consumer-Driven Health Care Limits and Thresholds
 
Archer MSAs 2018 (new) 2017 (old)
High Deductible Health Plan Deductible‒Single    
  Minimum $2,300 $2,250
  Maximum $3,450 $3,350
     
High Deductible Health Plan Deductible‒Family    
  Minimum $4,600 $4,500
  Maximum $6,850 $6,750
     
High Deductible Out-of-Pocket Maximum    
  Single $4,600 $4,500
  Family $8,400 $8,250
       
QSEHRAs 2018 (new) 2017 (old)
Maximum Reimbursement Allowed    
  Single $5,050 $4,950
  Family $10,250 $10,050
     
Fringe Benefit Limits and Thresholds
 
Adoption Assistance 2018 (new) 2017 (old)
Maximum Exclusion for Employer-Provided Adoption Assistance $13,840 $13,570
Adoption Tax Credit Limit $13,840 $13,570
     
Transportation Fringe Benefits 2018 (new) 2017 (old)
Parking $260 $255/mo
Transit Passes & Vanpooling (combined) $260 $255/mo
     

Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.

Subscribe to the NBS Knowledge Base

Subscribe to be notified when new articles are posted.