Benefit Limits for 2021

Each year, the IRS sets new limits for High Deductible Health Plans, Health Savings Accounts, and Flexible Benefit Plans. Please see below for our ready reference chart setting forth the Benefits Limits for the 2021 tax year.

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2021 2020
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA) $2,750 $2,750
Healthcare FSA max rollover $550 $550
Dependent Care FSA max election (per year) (Single or Married Filing Jointly) $5,000 $5,000
Dependent Care FSA max election (per year) (Married Filing Separately) $2,500 $2,500
Transportation Benefits
Parking Account $270/mo $270/mo
Transit Account $270/mo $270/mo
High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible – Self-only $1,400 $1,400
HDHP min annual deductible – Family $2,800 $2,800
HDHP out-of-pocket max – Self-only $7,000 $6,900
HDHP out-of-pocket max – Family $14,000 $13,800
HSA max contribution limit – Self-only $3,600 $3,550
HSA max contribution limit – Family $7,200 $7,100
HSA catch up contribution limit (age 55) $1,000 $1,000
ACA Plan Limits
Maximum Out-of-Pocket (Self-Only or Individual in a Family) $8,550 $8,150
Maximum Out-of-Pocket (Family) $17,100 $16,300
Salary Thresholds for Non-discrimination Testing
Highly compensated employees $130,000 $130,000
Key employees $185,000 $185,000
Retirement Plans (401(k), 403(b))
Elective contributions $19,500 $19,500
Max ER and EE contributions for those 49 and younger $58,000 $57,000
Catch-up contributions $6,500 $6,500
Max ER and EE contributions for those 50+ $64,500 $63,500

DOL Ends Temporary Non-Enforcement of New Paid Leave Protections

As of April 21, 2020, covered employers (with fewer than 500 employees) across the country must be in full compliance with the paid leave provisions of the Families First Coronavirus Response Act (FFCRA), which became effective April 1, 2020. On April 20, the U.S. Department of Labor announced the end of the temporary period of non-enforcement, which was intended to allow employers time to understand and come into compliance with the new Emergency Paid Sick Leave and Emergency Family Medical Leave laws.

Moving forward, full compliance with FFCRA will be expected. Moreover, proper documentation and administration of the new Emergency Paid Sick Leaves and Emergency Family Medical Leaves will be critical to receiving payroll tax credits for the sick leave wages provided to employees under the new law.

If you have any questions or need assistance administering the new FFCRA paid leave laws, the attorneys and HR professionals at Lake Effect HR & Law are ready and willing to help. Contact us at info@le-hrlaw.com or 1-844-333-5253.

Lake Effect HR & Law, LLC
(844) 333-5253 (LAKE)
info@le-hrlaw.com

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