Pre-Tax Benefit Limit Increases for 2017

With the end of the year soon upon us, we wanted to remind you of the new contribution limits for various taxed deferred accounts for 2017.  The IRS released the new limits a couple months ago and yet again increased many of the limits.

Starting with the HSA or Health Savings Account, the IRS increased the limit by $50 to $3,400 for individuals and also by $50 for families to $6,750. One thing to keep in mind is that anyone that is 55 years –old or older can utilize a catch-up contribution of an additional $1,000.  More positive news about HSA’s is that the minimum deductible amount did not increase.  The amounts stayed flat at $1,300 for individuals and $2,600 for families. 

The Next account I’ll touch on is the FSA or Flexible Spending Account.  The FSA is very similar to the HSA however, it is a use it or lose it account.  Some FSA’s do have an option where you can rollover up to $500 but anything after that it lost. Also, just like the HSA, FSA limits will rise by $50 to $2,600. 

Lastly, to touch on two benefits that will not be changing contribution limits.  These to benefits are the commuter benefits and 401 (k) accounts.  The commuter benefits will stay at $255 monthly and the 401 (k) will still have an annual contribution limit of $18,000.  The catch up contribution for those aged 50 and over for 401 (k) Accounts will remain at $6,000.

If you have any questions about the upcoming changes to any of these pre-tax benefits, or any other benefits give Better Business Planning a call and a Benefits Consultant can answer all your questions.