Health Savings Account Limits in 2021

by | Jul 2, 2021

Health Savings Account Limits in 2021

Earlier in June this year, the IRS released the calendar year 2021 inflation-adjusted dollar limits for the Health Savings Accounts (HSAs). The Revenue Procedure notification contains the maximum annual HSA contribution amounts, the minimum yearly deductibles, and the maximum out-of-pocket expenses for high-deductible health plans (HDHPs). It is important to note that HSAs are paired with HDHPs. These amounts are updated annually to reflect cost-of-living adjustments.

Contribution Limits

The 2021 annual HSA contribution limit is $3,600 for individuals for self-only HDHP plans, up from $3,550 in 2020. Also, the contribution limit is $7,200 for individuals with family HDHP plans, up from $7,100 in 2020.

HDHP Minimum Deductibles

The 2021 minimum annual deductible is $1,400 for self-only plans (same as 2020) and $2,800 for family HDHP plans (same as 2020).

HDHP Out-of-Pocket Maximums

The 2021 limit on out-of-pocket expenses (including items such as deductibles, copayments, etc.) is $7,000 for self-only HDHP plans, up from $6,900 in 2020. It is now $14,000 for family HDHP plans, up from $13,800 in 2020.

Catch-up Contributions

The 2021 HSA catch-up contribution amount for participants attaining age 55 by December 31, 2021, remains unchanged at $1,000.

 

Related Information

Read IRS Revenue Procedure 2020-32

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