The IRS has continued its busy few weeks of new notices and updates with the release of HSA contribution limits for 2021. With total HSA accounts now exceeding 28 million with more than $66 billion in assets (Devenir), the annual contribution limit announcement is one of the most highly-anticipated in the benefits world and one that could directly affect how account holders fund their accounts in the near future.
And this year, good news again! HSA contribution limits will increase for 2021, by $50 for self-only High Deductible Health Plan (HDHP) enrollment to $3,600 and by $100 for family HDHP enrollment to $7,200. The IRS released the limits for HSAs via Revenue Procedure 2020-32 as follows:
Self-Only Enrollment in a HDHP 2021 HSA Limits:
- Maximum annual contribution: $3,600 ($3,550 in 2020)
- Minimum deductible for the HDHP to be HSA-qualified: $1,400 (no change from 2020)
- Maximum HDHP out-of-pocket limit: $7,000 ($6,900 in 2020)
Family Enrollment in a HDHP 2021 HSA Limits:
- Maximum annual contribution: $7,200 ($7,100 in 2020)
- Minimum deductible for the HDHP to be HSA-qualified: $2,800 (no change from 2020)
- Maximum HDHP out-of-pocket: $14,000 ($13,800 in 2020)
Finally, a very important piece of info to keep in mind, especially for HSA users nearing retirement: catch-up contributions! HSA account holders age 55+ can contribute an additional $1,000 on top of the maximum as a catch-up contribution to bolster their savings as they approach retirement age.
This is great news for HSA users and one that will help them save even more on expected medical expenses in the near future.Thanks for visiting the HSAstore.com Learning Center. For the latest info about your health and financial wellness, be sure to follow us on Facebook and Twitter.