(Photo: Shutterstock)
The IRS has released its contribution limits for health savings accounts in 2021, and with years past, the limits continue to tick upward.
The IRS adjusts contribution limits for HSAs yearly based on inflation. For 2021, those limits will be:
- $3,600 for individual coverage (an increase of $50 from 2020)
- $7,200 for family coverage (an increase of $100 from 2020)
"The IRS limit increases are in line and similar to prior year increases, despite the COVID environment," says Harrison Stone, general counsel at ConnectYourCare.
The minimum deductibles for a qualifying high-deductible health care plan remain unchanged, at $1,400 for an individual and $2,800 for 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 contribute an extra $1,000 annually as a catch-up contribution.
HSAs and HDHPs have seen some other changes this year, most recently in March when the passage of the CARES act expanded eligible HSA expenses to include over-the-counter drugs. The IRS also issued guidance allowing employers and health plans to cover testing for COVID-19 prior to the deductible requirements of HDHPs.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
