The IRS released the 2021 contribution limits for Mass Transit, Parking, Medical FSA and Adoption Assistance in Revenue Procedure 2020-45. The limits are effective for plan years that begin on or after January 1, 2021. There were no changes to contribution limits for the commuter accounts or medical flexible spending account. Details below.
2021 Contribution Limit: Mass Transit and Parking
Maximum Election: $270 / month (no change from 2020)
2021 Contribution Limit: Medical FSA
Maximum Annual Limit: $2,750 (no change from 2020)
2021 Contribution Limit: Adoption Assistance
Maximum Credit: $14,440 (up from $14,300 in 2020)
Click here to see the 2021 HSA Limits released earlier this year.
If you have a Medical FSA and/or Adoption Assistance plan year that begins January 1, 2020 and would like to increase your tax-free limits, please contact your assigned Client Services Specialist.
NOTE: There is no requirement to increase Medical FSA or Adoption Assistance limits. Employers must initiate a change. By contrast, mass transit, parking and HSA limits will be updated automatically for elections intended on or after January 1, 2020.
Employees currently enrolled in a plan may contact Participant Services at 1-800-473-9595, Monday-Friday, 8am to 8pm with any questions regarding 2020 pre-tax limits.
Looking to information on current limits? Find it here:
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