'Most enrollment materials have been finalized and distributed, so employers should leverage more immediate communication channels-such as e-mail, social media and websites-to get the word out,' said Kim Buckey, vice president of client services at DirectPath, a benefits education, enrollment and health care transparency firm based in Burlington, Mass. $3,600 (up from $3,550) and the family contribution limit will be The individual HSA contribution limit will be $270, as is the monthly limit for qualified parking.Ģ021 contribution limits for 401(k) and similar defined contribution plans and annual limit adjustments for defined benefit pension plans.Ģ021 HSA contribution limits in May, giving employers and HSA administrators plenty of time to adjust their systems for the new year. For instance, for tax year 2021, the monthly limit for qualified transportation benefits remains

The guidance also includes annual cost of living adjustments (COLAs), if any were made, for other employee benefit plans. employers are preparing for their fall open enrollment period, during which employees select their benefit-contribution amounts for 2021.

$550, an increase of $50 from the original 2020 carryover limit.

The limit also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts (HSAs).įor health FSA plans that permit the carryover of unused amounts, the maximum carryover amount for 2021 is Original article appears below: For 2021, the dollar limit for employee contributions to health flexible spending accounts (health FSAs), made pretax through salary reductions, remains IRS Clarifies Relief for FSA Carry-Overs.Appropriations Act Permits Midyear FSA Elections, Unlimited Carry-over Amounts Through 2021.The amendment may be retroactive as along as it is adopted no later than the last day of the calendar year following the year in which the amendment is effective. Roll over all unused amounts in these accounts from 2020 to 2021 and from 2021 to 2022.Įmployers may also allow employees to prospectively change their health or dependent care FSA contribution rates during 2021 without experiencing a permitted election-change event.Įmployers wishing to offer optional FSA relief provisions must amend their Section 125 cafeteria plan to incorporate the changes. 1, 2022Ĭonsolidated Appropriations Act signed into law at the end of 2020 allows employers that sponsor health or dependent care FSAs to permit participants to The provision raises the exclusion limits for the plan year beginning after Dec. Pretax contribution limit increases to $10,500 (up from $5,000) for single taxpayers and married couples filing jointly, and to $5,250 (up from $2,500) for married individuals filing separately. Stimulus Measure Raises 2021 Dependent Care FSA Limitsįor calendar year 2021, the dependent care flexible spending account (FSA)

SHRM Online article 2022 Health FSA Contribution Cap Rises to $2,850. Update: For 2022 contribution limits for flexible spending accounts, transit benefits and adoption assistance, see the

Fsa eligible expenses 2021