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HSA Contribution Limits Increase for 2021

Written by Jamie Davis | May 27, 2020 2:15:18 PM

The IRS has announced the annual inflation-adjusted limits on deductions for contributions to a health savings account (HSA) allowed for taxpayers with family coverage under a high-deductible health plan (HDHP) for calendar year 2021.

For 2021, the annual limit on deductible contributions is $3,600 for individuals with self-only coverage under an HDHP, which is a $50 increase from 2020, and $7,200 for family coverage, a $100 increase from 2020.

The limits on annual deductibles remain unchanged from 2020. For 2021, the lower limit on the annual deductible for an HDHP is $1,400 for self-only coverage and $2,800 for family coverage.

The upper limit for out-of-pocket expenses is $7,000 for self-only coverage and $14,000 for family coverage, both increased from 2020.