Better Benefits, Lower Costs
IRS Announces Benefit Plan Limits for 2021
IRS Announces Benefit Plan Limits for 2021
The Internal Revenue Service (IRS) has released all benefit plan limits for the 2021 calendar year.
These limits are adjusted for inflation on an annual basis. In some cases, limits are the same as those in the calendar year 2020.
Benefit |
Category |
2020 |
2021 |
Change |
| Medical Flexible Spending Account (FSA) | Per Employee | $2,750 | $2,750 | No Change |
| Medical FSA Carryover Limit | Per Employee | $550 | $550 | No Change |
| Dependent Care FSA | Per Family | $5,000 ($2,500 if filing separately) |
$5,000 ($2,500 if filing separately) |
No Change |
| Health Savings Account (HSA) Contribution Limit | Self-Only Family |
$3,550 $7,100 |
$3,600 $7,200 |
$50 Increase $100 Increase |
| HSA Catch-up (Age 55+) | Per Employee | $1,000 | $1,000 | No Change |
| HSA-High Deductible Health Plan (HDHP) Min. Deductible | Self-Only Family |
$1,400 $2,800 |
$1,400 $2,800 |
No Change No Change |
| HSA-HDHP Out-of-Pocket Maximum | Self-Only Family |
$6,900 $13,800 |
$7,000 $14,000 |
$100 Increase $200 Increase |
| 401(k) Plan Limit | Per Employee | $19,500 | $19,500 | No Change |
| 401(k) Catch Up (Age 50+) | Per Employee | $6,500 | $6,500 | No Change |
| Adoption Assistance Programs | Per Child | $14,300 | $14,400 | $100 Increase |
| Social Security Wage Base | Per Employee | $137,700 | $142,800 | $5,100 Increase |
| Qualified Transportation | Per Employee | $270/Month | $270/Month | No Change |
| Parking Benefit | Per Employee | $270/Month | $270/Month | No Change |
Action Steps
- Update benefit plan designs for the new limits and make sure that plan administration will be consistent with the new limits in 2021.
- Communicate the new benefit plan limits to employees.
Looking to view the latest retirement plan benefits adjustments? Check out the 2021 Financial Bulletin for the limit changes that may impact your employees.
Share
Want to learn more about OneDigital?
Connect with a OneDigital expert today.