IRS releases HSA limits for 2021
What is an HSA and who is eligible?
- Be covered by a qualified high deductible health plan (HDHP)
- Not have any disqualifying health coverage (non-HDHP)
- Not be enrolled in Medicare
- Not be claimed as a dependent on someone else's tax return
2021 HSA Contribution Limits:
The new contribution limits are dependent upon whether an individual is enrolled in self-only or family coverage under an HDHP.
The 2021 HSA contributions have increased to:
- Single Coverage: $3,600 ($50 increase from 2020)
- Family Coverage: $7,200 ($100 increase from 2020)
The 2021 HDHP Minimum Deductible*:
- Single Coverage: $1,400 ($0 change from 2020)
- Family Coverage: $2,800 ($0 change from 2020)
2021 HDHP Maximum Out-of-Pocket Limit**:
- Single Coverage: $7,000 ($100 increase from 2020)
- Family Coverage: $14,000 ($200 increase from 2020)
For those 55 and older, catch-up contributions remain at $1,000.
* The deductible does not apply to preventative care services, nor to services related to COVID-19 testing.
** If the HDHP is a non-grandfathered plan, a per-person limit of $8,550 also will apply due to ACA's cost-sharing provision for essential health benefits.
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