H.S.A. Limits Increased for 2021

On May 20, 2020, the I.R.S. released Revenue Procedure 2020-32 to provide the inflation-adjusted limits for health savings accounts (H.S.A.s) and high deductible health plans (HDHPs) for 2021. The I.R.S. is required to publish these limits by June 1 of each year. 

These limits include:

  • The maximum H.S.A. contribution limit;
  • The minimum deductible amount for HDHPs; and
  • The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,600 to their H.S.A.s for 2021, up from $3,550 for 2020. Eligible individuals with family HDHP coverage will be able to contribute $7,200 to their H.S.A.s for 2021, up from $7,100 for 2020. Individuals aged 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their H.S.A.s.  

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

 

HSA/HDHP Limits

 

The following chart shows the H.S.A. and HDHP limits for 2021 as compared to 2020. It also includes the catch-up contribution limit that applies to HSA-eligible individuals aged 55 or older, which is not adjusted for inflation and stays the same from year to year.

 

Type of Limit

2020

2021

Change

H.S.A. Contribution Limit

Self-only

$3,550

$3,600

Up $50

Family

$7,100

$7,200

Up $100

HSA Catch-up Contributions (not subject to adjustment for inflation)

Age 55 or older

$1,000

$1,000

No change

HDHP Minimum Deductible

Self-only

$1,400

$1,400

No change

Family

$2,800

$2,800

No change

HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments, and other amounts, but not premiums)

Self-only

$6,900

$7,000

Up $100

Family

$13,800

$14,000

Up $200