Keenan Briefings

Briefings

2021 Benefit Limits for Health & Welfare Plans

December 08, 2020

Every year, the U.S. Government sets new limits for various benefit programs to reflect inflation and changes in the law. Following are the limits announced for 2021. Employers should review their benefit plans to ensure they reflect these new limits.

Retirement Plans

2020

2021

Limits on Benefits and Contributions:

- Defined benefit plan, basic limit

- Defined contribution plan, basic limit

- 401(k) and 403(b) plans, elective deferrals

- 457(b) plans, elective deferrals

- SIMPLE plans, elective deferrals

- Annual compensation limit


$230,000

$57,000

$19,500


$19,500

$13,500

$285,000


$230,000

$58,000

$19,500


$19,500

$13,500

$290,000

Catch-Up Contributions

- 401(k), 403(b) or governmental 457 plans

- SIMPLE plans


$6,500

$3,000


$6,500

$3,000

"Highly Compensated" Definition

$130,000

$130,000

"Officer" Or "Key Employee" Definition

$185,000

$185,000

 

Health Savings Accounts

2020

2021

Contributions

- Individual

- Family


$3,550

$7,100


$3,600

$7,200

Minimum Annual Deductible

- Self-Only

- Family


$1,400

$2,800


$1,400

$2,800

Out-of-Pocket Maximums (OOPM)

- Self-Only

- Family


$6,900

$13,800


$7,000

$14,000

Post-55 Catch-Up Limit

$1,000

$1,000

 

Non-HSA Qualified Plans

2020

2021

Out-of-Pocket Maximums (OOPM)

- Self-Only

- Other than self-only coverage


$8,150

$16,300


$8,550

$17,100

 

Medicare

2020

2021

Part A (Hospital Insurance):

- Inpatient deductible

- Daily Coinsurance, Days 61-90

- Daily Coinsurance, Days 91-150

Lifetime Reserve

- Daily Coinsurance, Skilled Nursing Facility[1]


$1,408

$352

$704


$176


$1,484

$371

$742


$185.50

Part B (Supplementary Medical Insurance):

- Monthly premium

- Deductible


$144.60

$198


$148.50

$203

Part D (Prescription Drug Benefit):

- Base Part D Premium

- Maximum Annual Deductible

- Initial Coverage Limit

- Annual Out-Of-Pocket Threshold

- Minimum Copayment for Costs Above The Annual Out-Of-Pocket Threshold


$32.74

$435

$4,020

$6,350

$3.60 generic

$8.95 other


$33.06

$445

$4,130

$6,550

$3.70 generic

$9.20 other

[1] For days 21-100. Days 1-20 is $0 for each benefit period.

 

Medical Savings Accounts

2020

2021


Individual Deductible Range

Individual Out-Of-Pocket Maximum

Family Deductible Range


Family Out-Of-Pocket Maximum

$2,350 – $3,550

$4,750

$4,750 – $7,100

$8,650

$2,400 - $3,600*

$4,800*

$4,800 -  $7,150*

$8,750*

 

Long Term Care Insurance Deductible Premiums

2020

2021

Age:

- 40 or less

- 41-50

- 51-60

- 61-70

- Over 70


$430

$810

$1,630

$4,350

$5,430


$450

$850

$1,690

$4,520

$5,640

 

Flexible Spending Accounts

2020

2021

Dependent Care

Medical

$5,000

$2,750

$5,000

$2,750

Medical FSA Employer Limit

$550

$550

 

Qualified Transportation Fringe Benefit

2020

2021

Parking

Transit Pass/ Commuter Vehicle

$270

$270

$270

$270

 

Control Employee Definition for Commuting Valuation

2020

2021

Officer Compensation

Employee Compensation

$115,000

$230,000

$115,000

$235,000

 

Affordable Care Act (ACA)

2020

2021

4980H(a) Penalty

$2,570

$2,700

4980H(b) Penalty

$3,860

$4,060

FPL Affordability Safe Harbors

- FPL for Single individual

- Maximum monthly contribution

[1]

$12,490

$101.79

[2]

$12,760

$104.52

Affordability

- Affordability threshold under 4980H affordability safe harbors

- Affordability threshold for eligibility of premium tax credits


9.78%

9.78%


9.83%

9.83%

PCORI Fee (per covered life)

$2.54[3]

not yet released

[1] Use 2019 poverty guidelines to determine affordability.

[2] Use 2020 poverty guidelines to determine affordability.

[3] For plan years ending on or after October 1, 2019 and before October 1, 2020.

Please contact your Keenan Account Manager for questions regarding this Briefing.


Keenan & Associates is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Clients are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the clients’ business activities.