The IRS has announced 2021 cost-of-living adjustments for certain tax provisions related to consumer-driven plans:
- The limit on voluntary employee salary reduction contributions to a health flexible spending account (FSA) remains unchanged from 2020 at $2,750.
- The maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) increases to $5,300 ($10,700 for family coverage), up $50 from the previous year. A “small employer” is defined as having fewer than 50 full-time employees.
- The monthly limit on fringe benefit exclusion for any transit pass is $270, the same as 2020. The exclusion amount for qualified parking also holds at $270.
MedBen clients with questions regarding these adjustments are welcome to contact Director of Administration Sharon A. Mills at (800) 423-3151, Ext. 438 or email@example.com.