stylized image of a green HSA debit card with band-aid on it (Photo: Shutterstock)


The IRS has released its contribution limits for health savings accounts in2021, and with years past, the limits continue to tick upward.


The IRS adjusts contribution limits for HSAs yearly based oninflation. For 2021, those limits will be:

  • $3,600 for individual coverage (an increase of $50 from2020)
  • $7,200 for family coverage (an increase of $100 from 2020)

"The IRS limit increases are in line and similar to prior yearincreases, despite the COVID environment," says Harrison Stone,general counsel at ConnectYourCare.


The minimum deductibles for a qualifying high-deductible healthcare plan remain unchanged, at $1,400 for an individual and $2,800for a family. Maximum out-of-pocket expenses have gone up $100 and$200 for individuals and families, respectively, to $7,000 and$14,000.


In addition, consumers over age 55 have the option to contributean extra $1,000 annually as a catch-up contribution.


HSAs and HDHPs have seen some other changes this year, mostrecently in March when the passage of the CARES act expandedeligible HSA expenses to include over-the-counter drugs. The IRSalso issued guidance allowing employers and healthplans to cover testing for COVID-19 prior to the deductiblerequirements of HDHPs.


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Emily Payne

Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.