Compliance Alert- HSA Requirements and Limits for 2021

HSA Requirements and Limits for 2021

Issue Date: May 21, 2020

View as word doc
View as pdf

The IRS released the 2021 health savings account (HSA) annual contribution limits and high deductible health plan (HDHP) requirements in IRS Rev. Proc. 2020-32 — https://www.irs.gov/pub/irs-drop/rp-20-32.pdf. The updated annual dollar amounts are set forth below.

2021 HSA Annual HSA Contribution Limits*

  • Self-only (single) HDHP coverage = $3,600
  • Other than self-only (family) HDHP coverage = $7,200

*Catch-up contributions — HSA-eligible individuals who have reached age 55 by the end of the taxable year can make an extra annual $1,000 catch-up contribution.

2021 Qualifying HDHP Coverage

  • Minimum Deductible – Self-only (single) = $1,400; Other than self-only (family) = $2,800
  • OOP Maximum – Self-only (single) = $7,000; Other than self-only (family) = $14,000
  HDHP Minimum Deductible HDHP Maximum OOP HSA Contribution Limit
2020 Single – $1,400 Single – $6,900 Single – $3,550
  Family – $2,800 Family – $13,800 Family – $7,100
2021 Single – $1,400 Single – $7,000 Single – $3,600
  Family – $2,800 Family – $14,000 Family – $7,200

For more information on HSA-eligibility, contributions and reimbursements, see our HSA Guide: http://www.benefitcomply.com/resources/wp-content/uploads/2020/01/HSAGuide_V5_Jan2020.pdf.

For help calculating 2020 HSA annual contribution limits, see the following spreadsheet:

2020 HSA Contribution Limits — http://benefitcomply.com/resources/wp-content/uploads/2019/05/HSAContributionCalculations_2020.xlsx