On Wednesday, May 20, the Internal Revenue Service (IRS) published the new rates for Health Savings Accounts (HSAs) in 2021. There is an increase for 2021 HSA contribution limits as well as out-of-pocket maximum limits for high deductible health plans (HDHPs). Learn more below.
2021 HSA Contribution Limits
For 2021, the IRS has adjusted HSA contribution limits for self-only and family coverage due to inflation. An individual with self-only coverage under an HDHP can contribute up to $3,600, a $50 increase. For those with family coverage, the new limit increases by $100 to $7,200.
Account owners 55 years and older can contribute up to $1,000 (no change) over their annual limit. In 2021, with a catch-up contribution, people who have self-only coverage can contribute a maximum of $4,600; those with family coverage can contribute a maximum of $8,200.
HDHP Minimum Deductibles
The IRS did not raise the minimum deductible for high deductible health plans. In 2021, it remains $1,400 for self-only coverage and $2,800 for family coverage.
Out-of-Pocket Maximums
The agency raised out-of-pocket maximums. For self-only coverage, the maximum increased by $100, from $6,900 to $7,000. For family coverage, the maximum increased by $200, from $13,800 to $14,000.
2021 HSA Contribution Limits, Out-of Pocket Max, and Min. Deductible
2021 | 2020 | ||
Self-only Coverage | HSA Contribution Limit | $3,600 (+$50) | $3,550 |
Out-of-Pocket Maximums | $7,000 (+$100) | $6,900 | |
Min. Annual Deductible | $1,400 | $1,400 | |
Family Coverage | HSA Contribution Limit | $7,200 (+$100) | $7,100 |
Out-of-Pocket Maximums | $14,000 (+$200) | $13,800 | |
Min. Annual Deductible | $2,800 | $2,800 |
Important HSA information
- The IRS has extended the 2020 tax filing deadline to July 15. HSA owners may make contributions for 2019 until the deadline.
- Over-the-counter medications and menstrual care products are now eligible expenses.
- At the end of each year, unused HSA funds roll over to the following year. There is no use-it-or-lose-it rule with an HSA.