2021 health FSA, other health and fringe benefit limits now set

Health FSA, certain HRA, Archer MSA and LTC limits
The table below shows the 2021 adjusted amounts for health FSAs, QSEHRAs, Archer MSAs and qualified LTC policies, along with the limits for 2020 and 2019. Also shown is the 2021 maximum annual employer contribution for excepted-benefit HRAs set by Rev. Proc. 2020-43. The health FSA carryover limits shown reflect the maximum unused funds that can carry over to the next plan year.
The 2021 adjusted amounts for health savings accounts (HSAs), HSA-qualifying high-deductible health plans, out-of-pocket maximums in non-grandfathered group health plans and various indexed amounts for the ACA’s employer-shared responsibility provision were announced earlier this year.
Qualified transportation fringe benefits and adoption assistance programs
This table shows the 2021 adjusted figures for qualified transportation fringe and adoption assistance benefits set by Rev. Proc. 2020-45, along with amounts for 2020 and 2019.
Related resources
Non-Mercer resources
- Rev. Proc. 2020-45 (IRS, Oct. 26, 2020)
- IRS provides tax inflation adjustments for tax year 2021 (IRS, Oct. 26, 2020)
- Rev. Proc. 2020-36 (IRS, July 21, 2020)
- Rev. Proc. 2020-32 (IRS, May 20, 2020)
- Final HHS notice of benefit and payment parameters for 2021 (Federal Register, May 14, 2020)
- Notice 2020-33, Modification of carryover rule for health FSAs and clarification of premium reimbursements by individual-coverage HRAs (IRS, May 12, 2020)
Mercer Law & Policy resources
- 2021 quick benefit facts (Oct. 27, 2020)
- 2021 transportation, health FSA and Archer MSA limits projected (Aug. 14, 2020)
- Affordable percentage will rise for employer health coverage in 2021 (July 22, 2020)
- 2021 ACA out-of-pocket maximums, ESR penalties, other changes ahead (June 3, 2020)
Related Solutions
Related insights
-
Law & PolicyMercer projects that 2026 limits for qualified parking and transit benefits and for contributions to and carryovers from health flexible spending arrangements will…
-
Law & Policy
Plan coverage of GLP-1s for weight loss: Compliance considerations
High cost and increasing demand for GLP-1s for weight management has many employers considering cost-containment measures for coverage in their employer-sponsored… -
Law & Policy
Roundup: State accrued paid leave mandates
More than one-third of all states have some form of accrued paid leave requirement; 18 states (including three with laws that take effect in 2025) and Washington,…