Annually, the Internal Revenue Service and Social Security Administration release cost-of-living adjustments that apply to dollar limitations set forth in certain IRS Code Sections. The Consumer Price Index warranted increases in some benefits figures for 2021—for a summary and charts of all key 2021 figures that are of interest to employers and sponsors of benefit plans, please click here.
Health FSA & Transportation Benefit Limits to Remain the Same in 2021
The IRS has announced that the contribution limit for health flexible spending arrangements (FSAs) will remain at $2,750 in 2021. For 2020, the contribution limit was also set at $2,750.
The monthly commuter benefits limit in 2021 for mass transit and parking remains at $270, which is also unchanged from the 2020 limits.
As always, please do not hesitate to reach out to our Group Benefits team with any questions.
Employee Health and Benefits
ACA Compliance
