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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.

Other Recent HDHP/HSA-Related Changes

CARES Act Makes Multiple HDHP/HSA Changes:

IRS Expands Definition of Preventive Care for HDHPs:

Recent COVID-19 Alerts

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

Full HDHP/HSA and COVID-19 Guide

Brian Gilmore

About the author

Brian Gilmore

Lead Benefits Counsel

Brian Gilmore is the Lead Benefits Counsel at Newfront. He assists clients on a wide variety of employee benefits compliance issues. The primary areas of his practice include ERISA, ACA, COBRA, HIPAA, Section 125 Cafeteria Plans, and 401(k) plans. Brian also presents regularly at trade events and in webinars on current hot topics in employee benefits law. Connect with Brian on LinkedIn.

The information provided is of a general nature and an educational resource. It is not intended to provide advice or address the situation of any particular individual or entity. Any recipient shall be responsible for the use to which it puts this document. Newfront shall have no liability for the information provided. While care has been taken to produce this document, Newfront does not warrant, represent or guarantee the completeness, accuracy, adequacy, or fitness with respect to the information contained in this document. The information provided does not reflect new circumstances, or additional regulatory and legal changes. The issues addressed may have legal, financial, and health implications, and we recommend you speak to your legal, financial, and health advisors before acting on any of the information provided.

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