Is there a specific dollar contribution limit each year?
No. However, IRS limits do apply to the ultimate annual lifetime benefit you can receive at retirement, and these limits could affect your contributions. For example, if your projected benefit payout goes above the limits, your desired annual contribution level will be reduced. The IRS also has rules for how the maximum annual benefit level is translated into a maximum lump sum available at retirement. The maximum lump sum is calculated based on legislated interest rate and mortality assumptions.
- What happens to any unused contribution? Why can the participants get a refund of their unused contributions at the end of the Plan Year?
- How is my contribution limit determined if I am not covered for a full year under the high-deductible health savings plan?
- Is there a dollar limit that the company may reimburse the employees through the MediDirect® program?