The IRS released the limits for health savings accounts and high deductible health plans for 2021. These amounts take into account cost-of-living adjustments.
- HSA Contributions. The annual contribution limit is $3,600 for individuals with self-only HDHP coverage and $7,200 for individuals with family HDHP coverage.
- This is an increase from 2020 of $50 for self-only coverage and $100 for family coverage
- HSA catch-up contributions. The maximum catch-up contribution for someone age 55 or older is $1,000
- This is no change from 2020
- HDHP Minimum Deductible. The minimum annual deductible is $1,400 for self-only HDHP coverage and $2,800 for family HDHP coverage.
- This is no change from 2020
- HDHP Out of Pocket Maximum. The limit on out-of-pocket expenses is $7,000 for self-only HDHP coverage and $14,000 for family HDHP coverage.
- This is an increase from 2020 of $100 for self-only coverage and $200 for family coverage
These limits are effective starting in 2021 and plans should make sure to administer the new limits properly.
