2021 Health FSA Contribution Limited to $2,750

Employers offering health flexible spending arrangements (FSAs) for 2021 may allow participating employees to contribute up to $2,750 during the 2021 plan year, according to the Internal Revenue Service (IRS); this remains unchanged from 2020. FSA contributions are tax-free payroll deductions that can be used towards medical expenses not covered by other health plans. If employers permitted the carryover of unused amounts, the maximum carryover amount is $550 (an increase of $50 from the 2020 limit). For more information, see the IRS news release.