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 Limits2021 Family Limits2020 Self Only Limits2020 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.

Benefit2021 Limits2020 Limits
Social Security OASDI$142,800$137,700
Medicare (Part A, hospitalization)UnlimitedUnlimited
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.

 

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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.

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