Normally, when you head into a new calendar year, you are informed in the prior year of increases in limits to benefits, such as Flexible Spending Accounts, Health Saving Accounts, deductible maximums.
But, 2018 (and 2017 for that matter) - are not normal years. Just last week, it was announced that due to the "Tax Cuts & Jobs Act" enacted at the end of 2017, not only overhauled our tax code, but it also affected some of our 2018 benefit limits because it changed the consumer price index (CPI) the following increases have been modified back to January 1, 2018:
1. Health Savings Accounts: 2018 maximum deposits for family plans were raised to $6,900.00 The revised maximum for 2018 is now $6,850. You can read more about this below.
3. Archer Medical Savings Accounts (MSAs): 2018 original maximum was $4,600 and it was adjusted to $4,550.
While the amounts may be de minimus to some, the administration and soft dollar costs of payroll adjustments, money being re-allocated will cost small & large businesses a like, more time & money to correct. Employees who do not adjust their accounts face potential negative salary and or/tax implications at the end of the year.
I never liked it when someone changed a rule after I started to play a game and I definitely don't like it when it left to the employee or business to fix or be penalized for it.
