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2021 Limits for Health Savings Accounts (HSAs)

Annually, the Internal Revenue Service (IRS) announces adjusted annual limits, reflecting increases in the cost of living, for high deductible health plans (HDHPs) and health savings accounts (HSAs).

On May 20, 2020, the IRS released the 2021 inflation adjusted amounts for HSAs. For calendar year 2021, the annual limitation on deductions under Code Section 223(b)(2)(A) for an individual with self-only coverage under a HDHP is $3,600, up $50 from the 2020 limits. For individuals with family coverage under a HDHP, the limit is $7,200, up $100 from the 2020 limits. No change to the HSA catch-up contribution limit for individuals 55 and older.

High Deductible Health Plans (HDHPs)

Account Limits

2020

2021

Change

Annual deductible minimums
  • Self-only: $1,400
  • Family:; $2,800
  • Self-only: $1,400
  • Family: $2,800
  • Self-only: No change
  • Family: No change
Annual out-of-pocket expenses (including deductibles, copayments, and coinsurance, but not premiums)
  • Self-only: $6,900
  • Family; $13,800
  • Self-only: $7,000
  • Family: $14,000
  • Self-only: $100
  • Family: $200
Health Savings Accounts (HSAs) Maximum Contributions
  • Self-only: $3,550
  • Family; $7,100
  • Self-only: $3,600
  • Family: $7,200
  • Self-only: $50
  • Family: $100
Catch-up contributions for HSA eligible individuals who are age 55 or older (not subject to inflation adjustments) $1,000 $1,000 No change

These limits are adjusted for increases in the cost of living annually and take effect in January. For HDHPs with non-calendar plan years, the adjusted limits for the calendar year in which the HDHP’s plan year begins can be applied for that entire plan year.

To stay up to date on the latest in healthcare and employee benefits compliance, visit the OneDigital Compliance Confidence Blog, or contact your local Benefits Consultant for specific questions.

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