Insights
Client Alert: Dollar Limitations for Employee Benefit Plans
Employee Benefits & Executive Compensation
The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. The IRS recently announced the new dollar limits for 2021.
| 2020 Limit | 2021 Limit | |
| Maximum 401(k), 403(b) and 457(b) Elective Deferral (unchanged) | $19,500 | $19,500 |
| Maximum Catch-Up Contribution Age 50 and Older (unchanged) | $6,500 | $6,500 |
| Highly Compensated Employee Threshold (unchanged) | $130,000 | $130,000 |
| Maximum Compensation Used to Determine Contributions and Benefits | $285,000 | $290,000 |
| Defined Contribution Plan Annual Contribution Limit | $57,000 | $58,000 |
| Defined Benefit Plan Annual Benefit Limit (unchanged) | $230,000 | $230,000 |
| Top Heavy Key Employee Threshold (unchanged) | $185,000 | $185,000 |
| Health FSA Maximum (unchanged) | $2,750 | $2,750 |
| Dependent Care FSA (unchanged) | $5,000 | $5,000 |
| Health Savings Accounts | Single/Family | Single/Family |
| Maximum Contributions | $3,550/$7,100 | $3,600/$7,200 |
| Maximum Catch-Up Contribution Age 55 and Older (unchanged) | $1,000 | $1,000 |
| High Deductible Health Plan (HDHP) | ||
| Minimum Deductibles (unchanged) | $1,400/$2,800 | $1,400/$2,800 |
| Maximum Out-of-Pocket Amounts | $6,900/$13,800 | $7,000/$14,000 |
| Maximum Monthly Qualified Transportation/Parking Fringe Benefit | $270 | $270 |
If you have any questions about this Alert, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Gray Hutchison (ghutchison@wyrick.com), San Parikh (sparikh@wyrick.com), or Jim Hoch (jhoch@wyrick.com).