We wanted to share an important IRS update and other reminders pertaining to contribution limits. The IRS released the 2021 limits for healthcare flexible spending accounts (healthcare FSAs), commuter benefits, and more as part of Revenue Procedure 2020-45. The IRS also previously released the 2021 Health Spending Account (HSA) contribution limits. 

Here’s what you need to know:

• Healthcare FSAs: The 2021 FSA Contribution Limit remains at $2,750, so employees in 2021 can again contribute up to $2,750 into their healthcare flexible spending accounts (healthcare FSAs), pretax, through payroll deduction. *The maximum carryover amount for 2021 is $550, an increase of $50 from 2020.*
• Commuter Benefits: The parking and transit contribution limits remain $270 for 2021.
• HSA: There has been a $50 increase for self-only/single contributions from 2020 ($3,500) to 2021 ($3,600). There has been a $100 increase for family contributions from 2020 ($7,100) to 2021 ($7,200). 

Healthcare FSA Contribution Limits:

2020 – $2,750 ($500 max carryover amount)

2021 – $2,750 ($500 max carryover amount)

Commuter Benefits Contribution Limits:

2020 – $270

2021 – $270

HSA Contribution Limits:

2020 Single – $3,550 2020 Family – $7,100

2021 Single – $3,600 2021 Family – $7,200