Health Savings Account Contribution Limits for 2021
The IRS recently released the inflation adjusted Health Savings Account (HSA) contribution limits for 2021. HSAs allow eligible individuals to make deductible contributions that can be withdrawn tax-free for reimbursement of eligible medical expenses.
For 2021, the limitation on HSA deductions is $3,600 (up from $3,550 for 2020) for an individual with self-only coverage under a High Deductible Health Plan (HDHP) or $7,200 (up from $7,100 for 2020) for family coverage.
An HDHP is defined under IRC Sec. 223(c) as a health plan with an annual deductible not less than $1,400 for self-only coverage or $2,800 (same as 2020) for family coverage, with annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) not exceeding $7,000 (up from $6,900 for 2020) for self-only coverage or $14,000 (up from $13,800 for 2020) for family coverage. Rev. Proc. 2020-32.