Table of limits and thresholds for employee benefit plans 2021


401(k) Plan limits

Defined contribution plans 2021 2020 Switch

Maximum employee’s optional adjournment

$ 19,500

$ 19,500

no change

Employee catch-up contribution (if 50 or over at the end of the year) 1

$ 6,500

$ 6,500

no change

Maximum optional deferral of the employee plus catch-up contribution (if 50 or over at the end of the year)

$ 26,000

$ 26,000

no change

Defined contribution ceiling, all sources (employee + employer)
2

$ 58,000

$ 57,000

+ 1000 $

Maximum limit of defined contributions (if 50 years or more at the end of the year); maximum contribution from all sources plus catch-up

$ 64,500

$ 63,500

+ 1000 $

Employee compensation limit for calculating contributions

$ 290,000

$ 285,000

+ $ 5,000

Pay threshold for key employees for non-discrimination testing 3

$ 185,000

$ 185,000

no change

Highly Paid Threshold for Non-Discrimination Testing 4

$ 130,000

$ 130,000

no change

Source: IRS Notice 2020-79.

HSA and HDHP limits

Health Savings Accounts (HSA) and High Deductible Health Plans (HDHP) 2021 2020 Switch

HSA contribution limit
(employer + employee)

Self-only: $ 3,600


Family: $ 7,200

Self-only: $ 3,550

Family: $ 7,100

Self-only: + $ 50

Family: + $ 100

HSA catch-up contributions
(55 years or older)

$ 1,000

$ 1,000

no change

HDHP minimum deductibles

Self-only: $ 1,400


Family: $ 2,800

Self-only: 1,400

Ffamily: $ 2,800

no change

no change

Maximum HDHP reimbursable amounts (deductibles, co-payments and other amounts, but not premiums)

Self-only: $ 7,000


Family: $ 14,000

Self-only: $ 6,900

Family: $ 13,800

Auto-only: +100

Family: + $ 200

Source: IRS Notice 2020-32.

FSA Health Limits

Flexible Healthcare Expense Accounts (Health FSA) and Limited Scope FSA (Vision / Dental)

2021

2020

Switch

Maximum salary deferral

$ 2,750

$ 2,750

no change

Maximum rollover amount

$ 550

Raised to $ 550 from $ 500 mid-year 1

no change from the adjusted amount



1
IRS Notice 2020-33, published May 12, 2020.
Source: IRS Revenue Procedure 2020-45.
Update: The Consolidated Appropriations Act promulgated at the end of 2020 allows employers who sponsor health care or dependent care ASPs to allow participants to carry over any unused amounts to these accounts from 2020 to 2021 and 2021 to 2022.

QSEHRA
Limits

Small Skilled Employer Health Reimbursement Arrangements (QSEHRA) 2021 2020 Switch

Maximum Payments and Refunds Through QSEHRA

Self-only: $ 5,300


Family: $ 10,700

Self-only: $ 5,250

Family: $ 10,600

Self-only: + $ 50

Family: + $ 100

Source: IRS Revenue Procedure 2020-45.

Public transit and parking limits

Tax exemption on eligible transportation benefits (monthly limits)

2021

2020

Switch

Passes and van pool services (employer + employee)

$ 270

$ 270

no change

Qualified parking

$ 270

$ 270

no change

Source: IRS Revenue Procedure 2020-45.

Income subject to social security payroll tax

Social Security Payroll Tax (FICA)

2021

2020

Switch

Maximum salary subject to FICA payroll tax 12.4% (6.2% paid by employer and 6.2% paid by employee)

$ 142,800

$ 137,700

+ $ 5,100

Source: Social security administration.



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