Zinner & Co. Blog and Newsroom

IRS Announces 2021 Contribution and Expense Limits for HSAs and HDHPs

Posted by Zinner & Co. Tax Team on Jun 23, 2020 4:37:49 PM
Find me on:

In late June, the Internal Revenue Service issued Revenue Procedure 2020-32, in which they set Health Savings Account contribution limits for calendar year 2021, along with minimum deductible and maximum out-of-pocket expenses for the High Deductible Health Plans, with which HSAs are paired.

For HSA family plans, the contribution limit increased by $100 over 2020 limits, while the contribution limit for single-person plans increased by $50.

Meanwhile, the IRS also announced the maximum out-of-pocket expenses for HDHP, which includes deductibles, co-pay and other items, but now premiums are going up as well. In 2021, the maximum out-of-pocket expenses for families increases by $200 over the previous year, while the individual plan will increase by $100.

See the table below for a full comparison:

Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans

  2020 2021 Change
HSA contribution limit (employer + employee) Self-only: $3,550
Family: $7,100
Self-only: $3,600
Family: $7,200
Self-only: +$50
Family: +$100
HSA catch-up contributions (age 55 or older) $1,000 $1,000 No change
HDHP minimum deductibles Self-only: $1,400
Family: $2,800
Self-only: $1,400
Family: $2,800
No change
No change
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) Self-only: $6,900
Family: $13,800
Self-only: $7,000
Family: $14,000
Self-only: +$100
Family: +$200

Source: IRS, Revenue Procedure 2020-32.

Topics: HSA, IRS, HDHP

CATEGORIES

Latest Posts

Learn why Zinner & Co. loves Cleveland

Subscribe to Our Blog