Pre-Tax Plan Maximums

What are Pre-Tax Plans?

With the continuing rise of medical, childcare, and commuting costs, employers are searching for ways to control these expenses for their employees.  Pre-tax plans offer a strategy for controlling overall benefit costs, without reducing benefits.

VitaFlex provides plan administration for companies who wish to achieve tax savings for themselves and for their employees.  Each plan option allows employees to set money aside on a pre-tax basis that they can then use for out of pocket expenses. Below, you will see brief descriptions of different pre-tax plans and the IRS limits for each Plan Year. 

 

Annual Pre-Tax Plan Limits

HSA

The HSA is an individual Health Savings Account that is owned by the employee and may be used for the payment of medical expenses that are not covered by a qualified High Deductible Health Plan (HDHP), including expenses that go toward satisfying the deductible. This maximum is inclusive of employer and employee contributions.

  2016  2017  2018 
 Individual $3,350  $3,400  $3,450 
 Family $6,750  $6,750  $6,900 
 Catch Up $1,000  $1,000  $1,000 

FSA

A Health or Dependent Care Flexible Spending Account (FSA) allows participating employees to reduce their earnings on a pre-tax basis to pay for certain qualified expenses.  Salary reductions provide significant tax savings to both the employee and the employer.

  2016  2017  2018 
 Health FSA  $2,550  $2,600  $2,650 
 Dependent  Care FSA $5,000  $5,000  $5,000 

 

 

Commute Monthly Limits

Transit

The Transit Plan allows employees to set money aside on a pre-tax basis for mass transit expenses. Employees get to use tax-free money for their commuting expenses when traveling to and from work.

2016  2017  2018 
$255  $255  $260 

Parking

The Parking Plan allows employees to set money aside on a pre-tax basis for work-related parking expenses. Employees get to use tax-free money for parking at or near an office location or mass transit hub.

2016  2017  2018 
$255  $255  $260