In Revenue Procedure 2020-32, the IRS announced the 2021 calendar-year inflation-adjusted dollar limits for health savings accounts (HSAs). The Revenue Procedure contains the maximum annual HSA contribution amounts, along with the minimum annual deductibles and maximum out-of-pocket expenses for high-deductible health plans (HDHPs) with which HSAs are paired. These amounts are updated annually to reflect cost-of-living adjustments.
For employers sponsoring HSAs and HDHPs, the new limits will affect benefit plan administration and communication materials for 2021. They may also influence HDHP designs and HSA contribution strategies for 2021.
2021 vs. 2020 HSA and HDHP limits
| Self-only coverage | 2020 | 2021 | Change |
|---|---|---|---|
| Maximum annual HSA contribution | $3,550 | $3,600 | +$50 |
| Minimum annual deductible for HDHP | $1,400 | $1,400 | $0 |
| Maximum annual out-of-pocket expense limit for HDHP | $6,900 | $7,000 | +$100 |
| Family coverage | 2020 | 2021 | Change |
|---|---|---|---|
| Maximum annual HSA contribution | $7,100 | $7,200 | +$100 |
| Minimum annual deductible for HDHP | $2,800 | $2,800 | $0 |
| Maximum annual out-of-pocket expense limit for HDHP | $13,800 | $14,000 | +$200 |
The 2021 HSA catch-up contribution amount for participants attaining age 55 by December 31, 2021, remains $1,000. This amount is set by statute and is not subject to cost-of-living adjustments.
Download
| Title | File Type | File Size |
|---|---|---|
| Insider June 2020 | .8 MB |
