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Updated December 28, 2020
Social Security Wage Base Changes – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Social Security Wage Base | $137,700.00 | $142,800.00 |
FSA Limit Changes – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Health FSA Limit | $2,750.00 | $2,750.00 |
| Dependent Care Limit | $5,000.00 | $5,000.00 |
HSA Limit Changes – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Individual HSA Limit | $3,550.00 | $3,600.00 |
| Family HSA Limit | $7,100.00 | $7,200.00 |
| HSA Catch-up Contribution (age 55+) | $1,000.00 | $1,000.00 |
| Individual HDHP Out-Of-Pocket Max | $6,900.00 | $7,000.00 |
| Family HDHP Out-Of-Pocket Max | $13,800.00 | $14,000.00 |
Mileage Reimbursement Changes – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Business Miles Driven | $0.575 | $0.56 |
| Moving Mileage Reimbursement | No longer allowed | No longer allowed |
Transportation Benefits – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Parking Allowance – Per Month | $270.00 | $270.00 |
| Transit Allowance – Per Month | $270.00 | $270.00 |
Qualified Small Employer HRA (QSEHRA) – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Single – Monthly | $437.50 | $441.67 |
| Family – Monthly | $883.33 | $891.67 |
| Single – Annual | $5,250.00 | $5,300.00 |
| Family – Annual | $10,600.00 | $10,700.00 |
401(k), 403(b), 457 Plan Limit Changes – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Maximum employee elective deferral | $19,500.00 | $19,500.00 |
| Employee catch-up contribution (if age 50 or older by year-end) | $6,500.00 | $6,500.00 |
| Employee compensation limit for calculating contributions | $285,000.00 | $290,000.00 |
| *The $6,500 catch-up contribution limit for participants age 50 or older applies from the start of the year to those turning 50 at any time during the year. | ||
IRA Contribution Limits – Effective 1/1/2021
| 2020 | 2021 | |
|---|---|---|
| Traditional IRA | $6,000.00 | $6,000.00 |
| Roth IRA | $6,000.00 | $6,000.00 |
| Employee catch-up contribution (if age 50 or older by year-end) | $1,000.00 | $1,000.00 |
| *The $1,000 catch-up contribution limit for participants age 50 or older applies from the start of the year to those turning 50 at any time during the year. | ||
Check out our guide to the payroll process for more information, or try out our employer payroll calculator to see how these taxes are applied in practice.
