IRS 2021 Plan Maximums and Limits

To date, the IRS has released a number of HSA and ACA maximums and limits applicable to 2021 health and welfare plans. See below for the 2021 numbers along with comparisons to 2020. We will update this page as the IRS releases more 2021 maximums and limits throughout the year.

New in 2020, the IRS has indexed the Health FSA Carryover Maximum amount, so we have added that to our chart. The amount shown is the maximum that can be carried forward from plans beginning in the listed year into plans beginning the following year.

Cafeteria Plans:

2020 2021
Health FSA Maximum: $2,750 $2,750
Health FSA Carryover Maximum: $550 $550
Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (unless married filing separately): $5,000 TBA
Dependent Care Assistance Plans (Dependent Care FSA) annual maximum (if married filing separately): $2,500 TBA
Medical mileage rate to obtain medical care (reimbursable by a Health FSA): $0.17 TBA
Compensation amount for determining Highly Compensated Employee: $130,000 TBA
Compensation amount for determining Key Employee (officers/owners earning over): $185,000 $185,000

Health Savings Accounts (HSAs):

2020 2021
Minimum annual HDHP deductible – Single: $1,400 $1,400
Minimum annual HDHP deductible – Family: $2,800 $2,800
Annual HSA Contribution Limit – Single: $3,550 $3,600
Annual HSA Contribution Limit – Family: $7,100 $7,200
Plan Out-of-Pocket Max for HSA Eligibility – Single: $6,900 $7,000
Plan Out-of-Pocket Max for HSA Eligibility – Family: $13,800 $14,000
Annual HSA Contribution Limit – Age 55+ catch-up: $1,000 $1,000

Affordable Care Act (ACA):

2020 2021
Plan Out-of-Pocket Max for ACA Compliance – Individual: $8,150 $8,550
Plan Out-of-Pocket Max for ACA Compliance – Family: $16,300 $17,100
ACA Affordability Percentage: 9.78% 9.83%

Transportation Fringe Benefits (per month):

2020 2021
Parking: $270 $270
Transit Passes & Vanpooling: $270 $270

For more information or questions regarding how the limits impact your plan, feel free to contact us.