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.

Links:

• IRS Rev. Procedure 2020-32
• Non-HDHP Plan Limits for 2021