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:
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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.