As open enrollment’s being rolled out, employers will need to adjust contributions in their communications and summary plan descriptions, as the IRS has announced its contribution limits for 2021 benefits plans.
Maximum annual contributions for employee 401(k) plans will remain at $19,500, and catch-up contributions for those aged 50+ remain unchanged at $6,500.
HSAs, FSAs, HRAs
- Health savings accounts (HSAs): Contribution limits will be $3,600 for single (up $50 from 2020) and $7,200 for family (up $200).
- Flexible spending accounts (FSAs): The contribution cap stays at $2,750, while the carryover limit increases to $550 (up $50).
- Dependent care FSAs: These child care expense accounts stay the same at $5,000 for married employees, $2,500 for single employees.
- Health reimbursement accounts (HRAs): Limits for contributions will remain at $1,800 for 2021.
The maximum out-of-pocket limit in a high deductible health plan is $7,000 (up $100) for single and $14,000 for family (up $200).