Inflation-Adjusted Contribution Limits and HDHP Amounts to Increase
The IRS has announced the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code.
Annual Contribution Limits
For calendar year 2021, the annual limit on HSA contributions for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,600 (up from $3,550 for 2020). The annual limit on HSA contributions for an individual with family coverage under an HDHP is $7,200 (up from $7,100 for 2020).
HDHP Amounts
For plan years beginning in 2021, an HDHP is defined as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $7,000 for self-only coverage or $14,000 for family coverage.
Click here to read the IRS announcement.
