HSA/HDHP 2021 Contribution Limits

Each year, the IRS announces inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs). The IRS is required to publish these limits by June 1 of each year. These limits include:

• The maximum HSA contribution limit
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limits for HDHPs.

These limits vary under self-only or family coverage. For 2021, individuals with self-only HDHP coverage will be able to contribute $3,600 to their HSAs (up from $3,550 for 2020). Eligible individuals with family HDHP coverage will be able to contribute $7,200 to their HSAs for 2021 (up from $7,100 for 2020). Those individuals aged 55 or older are eligible to make an additional $1,000 “catch-up” contribution to their HSA accounts.

The minimum deductible amount for HDHPS remains the same for 2021 plan years. This is in the amount of $1,400 for self-only coverage and $2,800 for family coverage. However, the maximum out-of-pocket expense limit increases to $7,000 for self-only coverage and $14,000 for family coverage.

These new contribution limits are for the 2021 plan year and apply for plan years beginning on or after Jan. 1, 2021. If you have any questions regarding an HSA/HDHP plan, please Contact Us!