On Tuesday, May 20, the IRS published the 2021 rates for Health Savings Accounts (HSAs) and high deductible health plans (HDHPs). Next year, starting on January 1, HSA owners will see an increase in annual contribution limits and out-of-pocket maximums. Learn more about the 2021 HSA contribution limits below.
2021 HSA Contribution Limits
For 2021, the IRS has adjusted HSA contribution limits for self-only and family coverage due to inflation. An individual with self-only coverage under an HDHP can contribute up to $3,600, a $50 increase. For those with family coverage, the new limit increases by $100 to $7,200.
Catch Up Contributions
HSA owners 55 years and older can make catch up contributions, up to $1,000 over their annual limit.
In 2021, with a catch-up contribution, people who have self-only coverage can contribute a total of $4,600; those with family coverage can contribute a maximum of $8,200.
The out-of-pocket maximums for 2021 have also increased. For self-only coverage, the maximum goes from $6,900 to $7,000. For family coverage, the maximum increases from $13,800 to $14,000.
HDHP Minimum Deductibles
Minimum deductibles for high deductible health plans did not change; in 2021, it remains $1,400 for self-only coverage and $2,800 for family coverage.
2021 HSA Contribution Limits, Out-of-Pocket Max, HDHP Min. Deductible
|Self-Only||HSA Contribution Limits||$3,600||$3,550|
|HDHP Min. Deductible||$1,400||$1,400|
|Family||HSA Contribution Limits||$7,200||$7,100|
|HDHP Min. Deductible||$2,800||$2,800|
- HSA owners must be enrolled in a qualified high deductible plan in order to make contributions to their account
- The IRS extended the tax filing deadline by three months in 2020. HSA owners may make contributions for 2019 until July 15, 2020.
- You are allowed to update HSA elections at any time for any reason
- Over-the-counter (OTC) medications and menstrual care products are now eligible expenses.
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