Novus Advisors
2021 Benefit Plan Limits
401(k) Plan Limits
Defined Contribution Plans20212020Change
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) 20212020Change 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 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) 20212020Change
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
$270
no change
Qualified parking
$270
$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.