No Changes to Health FSA Maximum Limit the limit remains at $2,750 for 2021
The IRS announced Revenue Procedure 2020-45 which provides the 2021 cost-of-living increases for inflation for certain items. In 2021, the:
- Annual Healthcare Flexible Spending Account (FSA) contribution limits will not increase they will remain at the 2020 amount of $2,750
- Monthly limit for Transit and Parking will not increase they will remain at the 2020 amount of $270 per benefit
- Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $50 for individual coverage from the current amount of $5,250 to $5,300 and the maximum reimbursement amount will increase $100 for family coverage from the current amount of $10,600 to $10,700
As a reminder, the IRS announced 2021 Health Savings Account (HSA) contributions limit increases earlier this year. In 2021, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,550 to $3,600, and the family coverage contribution limit will increase $100 from the current $7,100 to $7,200.
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If you have any questions, please contact American Benefits Group for more information.