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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.
