2021 Employee Contribution and Benefit Limits
The Internal Revenue Service (IRS) recently announced the cost-of-living changes to contribution and benefit limits for a variety of employer sponsored plans in 2021. Most dollar amount limits for 2020 remain the same for 2021, with a handful of amounts seeing slight increases.
The table below shows the contribution and benefit limits for certain plans in 2020 and 2021.
| HEALTH AND WELFARE PLAN LIMITS
FSA |
2020 | 2021 | |
| Health FSA salary reduction | $2,750 | ═ | $2,750 |
| Health FSA carryover | $500 | ↑ | $550 |
| Dependent Care FSA – married filing jointly or single parent | $5,000 | ═ | $5,000 |
| Dependent Care FSA – married filing separately | $2,500 | ═ | $2,500 |
| HRA | 2020 | 2021 | |
| Excepted Benefit HRA | $1,800 | ═ | $1,800 |
| Qualified Small Employer HRA (QSEHRA) – self only | $5,250 | ↑ | $5,300 |
| Qualified Small Employer HRA (QSEHRA) – family | $10,600 | ↑ | $10,700 |
| HDHP | 2020 | 2021 | |
| HDHP: max. annual out-of-pocket (self only) | $6,900 | ↑ | $7,000 |
| HDHP: max. annual out-of-pocket (family) | $13,800 | ↑ | $14,000 |
| HDHP: min. annual deductible (self only) | $1,400 | ═ | $1,400 |
| HDHP: min. annual deductible (family) | $2,800 | ═ | $2,800 |
| HSA | 2020 | 2021 | |
| HSA: annual contributions (self only) | $3,550 | ↑ | $3,600 |
| HSA: annual contributions (family) | $7,100 | ↑ | $7,200 |
| HSA: catch-up contributions (age 55+) | $1,000 | ═ | $1,000 |
| Commuter | 2020 | 2021 | |
| Qualified Transit and Parking – monthly | $270 | ═ | $270 |
| RETIREMENT PLAN LIMITS | 2020 | 2021 | |
| 401(k), 403(b) & 457(b) contributions | $19,500 | ═ | $19,500 |
| Catch-up contributions (age 50+) | $6,500 | ═ | $6,500 |
| Defined contribution plan (annual contributions) | $57,000 | ↑ | $58,000 |
Complete details on these and other cost-of-living adjustments can be viewed in IRS Revenue Procedure 2020-45 and IRS Notice 2020-79.
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