IRS 2021 FSA contribution limits

The IRS announced an increase to flexible spending account (FSA) contribution limits for 2021.

Date Posted: January 26, 2021


On October 27, 2020, the IRS announced the FSA limits for 2021:

  • Limits remain unchanged at $2,750 when you make pre-tax contributions to a health FSA account.
  • The carryover amount of unused health FSA funds is increased to $550 (up $50 from the 2020 limit of $500) for 2021.
  • Dependent care FSA limits remain unchanged at $5,000 a year for individuals or married couples filing jointly, or $2,500 for a married person filing separately.
  • For 2021, the maximum amount of an employer subsidy for qualified child-adoption expenses that can be excluded from an employee's gross income is increased to $14,400, up from $14,300 in 2020.

Additionally, the guidance also addresses qualified transportation benefits. They remain unchanged at $270 for the 2021 tax year for qualified parking expenses.