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:
- https://www.newfront.com/blog/how-the-cares-act-affects-employee-benefits
- HDHPs Can Provide First-Dollar Telehealth Services
- Tax-Free HSA Distributions for OTC Medicines and Drugs Without a Prescription
- Tax-Free HSA Distributions for Menstrual Care Products
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
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.
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