Plan Limits for 2021
Health & Welfare Plans
- Employees can again put up to $2,750 into their health care flexible spending accounts. The maximum carryover amount for 2021 is $550, an increase of $50 from 2020.
- The monthly exclusion amount for transportation in a commuter highway vehicle and any transit pass is $270.
- The amount that can be excluded from an employee’s gross income for the adoption of a child with special needs is $14,440.
- A high deductible health plan is defined as one that, for self-only coverage, has an annual deductible that is not less than $2,400 and not more than $3,600, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,800. For family coverage, the plan must have an annual deductible that is not less than $4,800 and not more than $7,150, and under its annual out-of-pocket expenses for covered benefits do not exceed $8,750 (applicable to Medical Savings Accounts, not to group health plans)
As announced earlier this year in Revenue Procedure 2020-32, the minimum deductible and maximum out-of-pocket expenses for the HDHPs are:
for High-Deductible Health Plans
|HDHP minimum deductibles||Self-only: $1,400
|HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)||Self-only: $6,900
- The annual additions limit to Savings plans has increased $1,000, to $58,000.
- Compensation considered for Savings plan has increased to $290,000, from $285,000.
- The Social Security Wage Base has risen to $142,800 from $137,700
Other limits (such as catch-up contributions, etc.) remain unchanged.