2021 Employee Contribution and Benefit Limits

2021 contribution 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.

To see how BASIC could improve your benefits administration, request a proposal today!

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