IRS announces 2018 pension and other COLAs

October 20, 2017

The IRS has announced updated limits for benefits and contributions for qualified retirement plans and more for 2018. Here are the highlights:

• 401(k) contribution limit increases to $18,500 (up from $18,000)
• Annual additions to defined contribution plans increase by $1,000 to $55,000
• Catch-up contributions (for those age 50 and over) remains unchanged at $6,000
• Voluntary salary reductions for health flex spending arrangements increases to $2,650 (up $50)
• Standard deduction for married couples filing jointly increases to $13,000 (up from $12,700)
• Standard deduction for single taxpayers and married filing separately increases to $6,500 (up from $6,350)
• Personal exemption increases by $100 to $4,150
• Plans defined as high deductible have an annual deductible of $2,300-$3,450 for individuals and $4,600-$6,850 (Up by $50-$100 across the board)
• Maximum out-of-pocket expenses increase $100 to $4,600 for singles and  $150 to $8,400 for families

For the complete list, visit https://www.irs.gov/pub/irs-drop/n-17-64.pdf. If you have questions about these updates, call your account manager at 888-556-0123.