IRS Releases 2021 Limits for HSAs

IRS Releases 2021 Limits for HSAs

On May 20, 2020, the IRS released Revenue Procedure 2020-32.  It provides the 2021 inflation-adjusted amounts for HSA-qualified high deductible health plans (HDHPs).

The inflation-adjusted increases for 2021 are:

  • HSA-Qualified HDHP Self Coverage: Annual deductible must be $1,400 or more in 2021 (up $50 from 2020), and annual out-of-pocket expenses cannot exceed $7,000 (up $100 from 2020).
  • HSA Contribution Limit for Self Coverage: Increases to $3,600 in 2021, up $50 from 2020.
  • HSA-Qualified HDHP Family Coverage: Annual deductible must be $2,800 or more in 2021 (no change from 2020), and annual out-of-pocket expenses cannot exceed $14,000 (up $200 from 2020).
  • HSA Contribution Limit for Family Coverage: Increases to $7,200 in 2021, up $100 from 2020.
  • No change to the Age-55+ HSA catch-up limit.  That value remains at $1,000 per year.

Please contact your Sales Executive or Account Manager for additional details about how this may affect your 2021 HDHP-HSA offerings.    And, don’t forget to review our 2021 non-HDHP plan limits here.

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For more information, contact info@apbenefitadvisors.com. The information contained in this post, and any attachments, is not intended and should not be misconstrued as legal advice. You should contact your employment, benefits or ERISA attorney for legal direction.

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