Federal law sets annual limits on various tax-preferred employee benefit plans. The following chart compares the 2021 and 2020 limits for the most common types of plans and benefits.
| Health Savings Accounts (HSA) | 2021 Self Only Limits | 2021 Family Limits | 2020 Self Only Limits | 2020 Family Limits |
|---|---|---|---|---|
| HSA Maximum Contribution | $3,600 | $7,200 | $3,550 | $7,100 |
| HSA Maximum “Catch-Up” Contribution (individuals age 55 or older) | $1,000 | $1,000 | $1,000 | $1,000 |
| High-Deductible Health Plan (HDHP) Minimum Deductible | $1,400 | $2,800 | $1,400 | $2,800 |
| HDHP Maximum Out-of-Pocket Expense | $7,000* | $2,800 $14,000 | $6,950 | $13,800 |
*A non-grandfathered “family” HDHP also must limit each individual’s out-of-pocket costs for essential health benefits to no more than $7,000.
| Benefit | 2021 Limits | 2020 Limits |
|---|---|---|
| Social Security OASDI | $142,800 | $137,700 |
| Medicare (Part A, hospitalization) | Unlimited | Unlimited |
| Health FSA Maximum Contribution (per plan year) | $2,750 | $2,750 |
| Parking | $270/month | $270/month |
| Transit Pass/Commuter Vehicle | $270/month | $270/month |
| Maximum Salary Deferral (§401(k)/§403(b)/§457) | $19,500 | $19,500 |
| Maximum “Catch-Up” Salary Deferral (age 50 or older) | $6,500 | $6,500 |
| Compensation Limit (§401(a)) | $290,000 | $285,000 |
| Maximum Defined Benefit Limit | $230,000 | $230,000 |
| Defined Contribution Annual Additions Limit (§415) | $58,000 | $57,000 |
| Defined Contribution Annual Additions Limit (§415) if age 50 or older | $64,500 | $63,500 |
| “Key Employee” Compensation Limit | $185,000 | $185,000 |
| “Highly Compensated Employee” Limit | $130,000 | $130,000 |
Please contact your EPIC account team with any questions regarding these updated limits.
EPIC Employee Benefits Compliance Services
For further information on this or any other topics, please contact your EPIC consulting team.
Learn About Our Employee Benefits Compliance Services
EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.
DOWNLOADABLE RESOURCES
Sign up for our Compliance Matters Newsletter
You’ll receive our monthly newsletter, as well as special compliance alerts and invitations to our compliance webinars
