2018 IRS employee benefit plan rates and limits: What you need to know

The Internal Revenue Service recently announced relevant employer welfare plan rates and limits for 2018. The Patient-Centered Outcomes Research Institute (PCORI) fee, Flexible Spending Account (FSA) limit, Transportation Benefit limit, Transitional Reinsurance fee, and Health Savings Account (HSA) limit are all listed below.
PCORI Fee
For most 2018 plans, the PCORI fee is $2.39 per covered life per year and will be indexed yearly to national health expenditures until it ends in 2019.

As a reminder, for most 2017 plans, the PCORI fee is set at $2.26 per covered life per year.

Assessed on both self-insured and fully insured health plans, the PCORI fee funds research relating to patient-centered outcomes for medical treatment.

Flexible Spending Account
The new FSA cap has been set at $2,650. This new limit applies to the plan year beginning on or after January 1, 2018.

Transportation Benefit
The Transportation Benefit limit increased for 2018 to $260 per month, up from $255 in 2017. This refers generally to a parking benefit provided by employers.

The commuter transit benefit remains separate from the parking benefit.

Transitional Reinsurance Fee
As a reminder, the Transitional Reinsurance fee was eliminated in 2017 and remains eliminated for 2018 plan years.

Health Savings Account
The IRS announced higher contribution limits for HSAs for both self-only and family coverage for 2018. The 2018 High-Deductible Health Plan (HDHP) limits also increased from 2017 levels.

Please see the chart below for current and future HSA and HDHP limits.

HDHP Limits

HSA Contributions
Self-Only: 2018: $3,450. | 2017: $3,400.
Family: 2018: $6,900. | 2017: $6,750.

Out-of-Pocket Maximum
Self-Only: 2018: $6,650. | 2017: $6,550.
Family: 2018: $13,300. | 2017: $13,100.

Minimum Deductible
Self-Only: 2018: $1,350. | 2017: $1,300.
Family: 2018: $2,700. | 2017: $2,600.

Relevant Fees and Limits

PCORI Fee
Plan year ends between October 1, 2017 and September 30, 2018: $2.39.
Plan year ends between January 1, 2017 and September 30, 2017: $2.26

Transitional Reinsurance Fee
2018: None.
2017: None.

FSA Cap (healthcare)
2018: $2,650.
2017: $2,600.

HSA Contribution Limit (self-only -- includes employer + employee)
2018: $3,450.
2017: $3,400.

HSA Contribution Limit (family -- includes employer + employee)
2018: $6,900.
2017: $6,750.

Transportation Benefit Limit
2018: $260 per month.
2017: $255 per month.

Contact Us
If you would like more information or have questions regarding any of the content in today's alert, please contact a Plexus client service team representative in Deer Park, Ill. (847-307-6100), Chicago (312-606-4800), Dallas (972-770-5010), or Oklahoma City (405-840-3033). We’re here to help – and we’re happy to help.