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2021 HSA and High Deductible Limits and Maximums
The Internal Revenue Service (IRS) released the 2021 contribution limits for Health Savings Accounts (HSAs) and set the minimum deductible and out-of-pocket maximums allowed for a plan to qualify as a high deductible health plan.
The 2021 HSA contribution limits, adjusted for inflation, are:
- $3,600 for individual coverage
- $7,200 for family coverage
This is $50 higher for individual coverage and $100 higher for family coverage than the HSA limits for this year. There is also a catch-up contribution limit (for HSA-eligible individuals age 55 or older) and it remains at $1,000 for 2021.
An HSA is an account that helps employees who have high deductible health plans pay for qualified medical expenses, such as doctor visits, prescriptions, chiropractic care and premiums for long-term-care insurance. Contributions to the accounts are made by employees on a pre-tax basis. The money can accumulate year after year tax free and is available for withdrawal tax free to pay for a variety of medical expenses. Employees can take the account with them if they change jobs or leave the workforce.
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 be $7,000. The 2021 maximum out-of-pocket limit for family coverage will be $14,000.
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