IRS Releases 2021 Inflation Adjusted Amounts for HSAs

The IRS has released Revenue Procedure 2020-32 announcing the HSA contribution limit increases for 2021.

  • The 2021 HSA contribution limit for individual coverage will increase by $50 to $3,600.
  • The 2021 HSA contribution limit for family coverage (employee plus at least one other covered) will increase by $100 to $7,200.

The catch-up contribution limit of $1,000 is fixed by law and does not adjust for inflation.

The Revenue Procedure also includes the 2021 calendar year minimum deductible and out-of-pocket maximums allowed for a plan to qualify as a high deductible health plan (HDHP)—the required coverage for an individual to be eligible to make or receive HSA contributions.

  • The 2021 minimum deductible for individual coverage will remain the same at $1,400.
  • The 2021 minimum deductible for family coverage will remain the same at $2,800.
  • The 2021 maximum out-of-pocket limit for individual coverage will increase by $100 to $7,000.
  • The 2021 maximum out-of-pocket limit for family coverage will increase by $200 to $14,000.
2020 2021
HDHP Minimum Deductible
Single $1,400 $1,400
Family $2,800 $2,800
HDHP Maximum Out-of-Pocket
Single $6,900 $7,000
Family $13,800 $14,000
HSA 
Contribution Limit
Single $3,550 $3,600
Family $7,100 $7,200
HSA 
55 + Contribution
Single $1,000 $1,000
Family $1,000 $1,000

 

Other Recent HDHP/HSA-Related Changes

IRS Permits HDHPs to Provide First-Dollar Coverage for COVID-19:

CARES Act Makes Multiple HDHP/HSA Changes:

IRS Expands Definition of Preventive Care for HDHPs:

Recent COVID-19 Alerts

IRS Relaxes Cafeteria Plan Rules for COVID-19 and Increases Health FSA Carryover to $550:

Major Employee Benefits Timeframe Extensions Announced for COVID-19 National Emergency:

Full HDHP/HSA and COVID-19 Guides

 

 

Disclaimer: The intent of this analysis is to provide the recipient with general information regarding the status of, and/or potential concerns related to, the recipient’s current employee benefits issues. This analysis does not necessarily fully address the recipient’s specific issue, and it should not be construed as, nor is it intended to provide, legal advice. Furthermore, this message does not establish an attorney-client relationship.  Questions regarding specific issues should be addressed to the person(s) who provide legal advice to the recipient regarding employee benefits issues (e.g., the recipient’s general counsel or an attorney hired by the recipient who specializes in employee benefits law).

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