These are the numbers we commonly use in planning this year’s tax free employee benefits:
401(k) pre-tax contribution limits = $19,000
401(k) catch-up contribution limit = $6,000
IRA contribution limits = $6,000
Annual Health Savings Account contribution limit for individuals = $3,500
Health Savings Account contribution limit for family coverage = $7,000
High Deductible Health Plan minimum deductible for individual = $1,350
High Deductible Health Plan minimum deductible for family = $2,700
High Deductible Health Plan maximum out-of-pocket amounts (individual) = $6,750
High Deductible Health Plan maximum out-of-pocket amounts (family) = $13,500
Health Savings Account catch-up contributions = $1,000
Flexible Spending Account contribution limit = $2,700
One quick “takeaway” is that an ordinary upper middle class family in their 50s or 60s now has the ability to shelter up to $60,000 of earned income simply through the new standard deduction plus these common tax deductions.
Leave a Reply