IRS Announces 2021 Limits for FSA/HSA/DCFSA/401k

Each year, HR professionals await updates regarding the limits the IRS allows for certain tax-free benefits. We can calm our loins now as the long-awaited information is here! Employers that offer certain tax impacted benefits will want to read below.


401k Limits


Employee Contribution Limit for 2021 - $19,500

Additional Catch Up Contribution of $6,500 for employees 50 or older

Health FSA Limit


Employee Election for 2021 - $2,750

Rollover Limit for 2021 - $550


Dependent Care FSA Limit


Employee Election for 2021 - $5,000 (individuals or married couples filing jointly), $2,500 for a married person filing separately


HSA Contribution Limit


Employee Contribution Limit for 2021 - $3,600 (ee only), $7,200 (family)


What Do You Need To Do?


If you provide employees with any of the benefits above, you’ll want to ensure employees are aware of the new limits. The new year is always a good time for employees to take a look at their contributions AND their beneficiaries and update if needed.


Boss Consulting HR, LLC

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