2021 HSA Contribution Limits Announced by IRS

May 21, 2020

The IRS has announced 2021 HSA contribution limits as part of the release of Revenue Procedure 2020-32. The limits are:  

The 2021 HSA contribution limits:  

 HSA 2020  2021 
 Self-only contribution limit $3,550  $3,600 
 Family contribution limit $7,100  $7,200 

The contribution limits for HSAs in 2021 will increase to $3,600 for single and $7,200 for family. 

2021 High-Deductible Health Plan (HDHP) amounts and expense limits were also announced:

HDHP (self-only coverage) 2020  2021 
 Annual deductible not less than: $1,400  $1,400 
Annual out-of-pocket expenses don't exceed:  $6,900  $7,000 

 HDHP (family Coverage) 2020  2021 
 Annual deductible not less than: $2,800  $2,800 
 Annual out-of-pocket expenses don't exceed: $13,800  $14,000 

Your employees must be enrolled in an HDHP in order to be eligible to participate in an HSA.

What 2021 HSA contribution limits mean:

Participants in health savings accounts must adhere to the 2021 HSA contribution limits as set by the IRS when participating in an HSA in 2021. Excess contributions will have tax implications.

What 2021 HDHP limits mean:

In order for participants to be eligible to participate in an HSA, one of the criteria that they must meet is they must enroll in an HDHP. The 2021 HDHP limits set minimum deductibles of $1,400 (self-only) and $2,800 (family coverage) for a health plan to be considered an HDHP. 

Links to previous HSA contribution limits posts:

Would you like to learn more about transitioning your employees to these popular plans? Complete the form below to download your free eBook! 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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