IRS Releases 2021 Qualified Benefit Plan Limits

October 27, 2020

The IRS has announced the following new contribution limits for 2021: 

Flexible Spending Accounts

  • Healthcare Flexible Spending Account - $2,750 (no change)
  • Flexible Spending Account Carryover Maximum - $550 (if applicable)
  • Dependent Daycare Account - $5,000 (no change)
  • Adoption Assistance - $14,440 (increase of $140)

Commuter Benefit Accounts

  • Parking Benefit - $270 (no change)
  • Transit Benefit - $270 (no change)

IRS Notice 2020-45

Health Savings Account 2021 limits announced in May 2020:

Maximum Contribution Amount

  • Individual - $3,600 (increase of $50)  
  • Family - $7,200 (increase of $100)  
  • Catch-up (age 55+) - $1,000 (no increase)

Maximum Out-of-Pocket Expense Limit

  • Individual - $7,000 (increase of $100)  
  • Family - $14,000 (increase of $200)

Minimum Health Plan Deductible Limit

  • Individual - $1,400 (no change)  
  • Family - $2,800 (no change)

IRS Notice 2020-32

Find these and historical qualified benefit plan limits in this handy reference guide.