2021 Benefit Plan Limits

401(k) Plan Limits

Defined Contribution Plans	2021	2020	Change
Maximum employee elective deferral	$19,500	$19,500	no change
Employee catch-up contribution (if age 50 or older by year-end) 1	$6,500	$6,500	no change
Defined contribution maximum limit, all sources (employee + employer) 2	$58,000	$57,000	+$1,000
Defined contribution maximum limit (if age 50 or older by year end); maximum contribution all sources plus catch-up	$64,500	$63,500	+$1,000
Employee compensation limit for calculating contributions	$290,000	$285,000	+$5,000
Key employees' compensation threshold for nondiscrimination testing 3	$185,000	$185,000	no change
Highly compensated employees' threshold for nondiscrimination testing 4	$130,000	$130,000	no change
1 The $6,500 catch-up contribution limit for participants age 50 or older applies from the start of the year for those turning 50 at any time during the year. 2 Total contributions from all sources may not exceed 100% of a participant's compensation. 3 Includes officers of the company sponsoring the plan. 4 For the 2021 plan year, as in 2020, an employee who earns more than $130,000 is an HCE.

Source: IRS Notice 2020-79.

HSA and HDHP Limits

Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs)	2021	2020	Change
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 (age 55 or older)	$1,000	$1,000	no change
HDHP minimum deductibles	Self-only: $1,400 Family: $2,800	Self-only: 1,400 Family: $2,800	no change no change
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)	Self-only: $7,000 Family: $14,000	Self-only: $6,900 Family: $13,800	Self-only: +100 Family: +$200

Source: IRS Notice 2020-32.

Health FSA Limits

Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs	2021	2020	Change
Maximum salary deferral contribution	$2,750	$2,750	no change

Source: IRS Notice 2019-44.

QSEHRA Limits

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs)	2021	2020	Change
Maximum payments and reimbursements through the QSEHRA	Self-only: $5,300 Family: $10,700	Self-only: $5,250 Family: $10,600	Self-only: +$50 Family: +$100

Source: IRS Notice 2019-44.

Commuter Transit and Parking Limits

Qualified Transportation Benefit Tax Exclusion (monthly limits)

2021

2020

Change

Transit passes and van pool services (employer + employee)

$270

no change

Qualified parking

$270

no change

Source: IRS Notice 2019-44.

Earnings Subject to Social Security Payroll Tax

Social Security (FICA) Payroll Tax	2021	2020	Change
Maximum earnings subject to Social Security 12.4% FICA payroll tax (6.2% paid by employer and 6.2% paid by employee)	$142,800	$137,700	+$5,100

Source: Social Security Administration.