The IRS recently released Rev. Proc. 2020-32, which outlines the inflation adjusted amounts for 2021 relevant to health saving accounts (HSAs) and high deductible health plans (HDHPs). The new limits are summarized in the table below.
| 2021 | 2020 | Change | |
| Annual HSA Contribution Limit (employer and employee) | Self-only: $3,600 Family: $7,200 | Self-only: $3,550 Family: $7,100 | Self-only: +$50 Family: +$100 |
| HSA Catch-Up Contributions (age 55 or older) | $1,000 | $1,000 | No change |
| Minimum Annual HDHP Deductible | Self-only: $1,400 Family: $2,800 | Self-only: 1,400 Family: $2,800 | No change |
| Maximum Out-of-Pocket for HDHP (deductibles, co-pays & other amounts except premiums) | Self-only: $7,000 Family: $14,000 | Self-only: $6,900 Family: $13,800 | Self-only: +$100 Family: +$200 |
Next Steps for Employers
As employers prepare for the 2021 plan year, they should keep in mind the following rules and ensure that any plan materials and participant communications reflect the new limits:
- HSA eligible employees can now contribute up to $3,600 (for self-only coverage) and $7,200 (for family coverage).
- The 2021 minimum annual deductible for HDHPs has not changed from 2020. HDHPs cannot have a deductible that is lower than the minimum HDHP deductible of $1,400 (for self-only coverage) and $2,800 (for family coverage).
- The out-of-pocket maximum for HDHPs cannot be higher than $7,000 (for self-only coverage) and $14,000 (for family coverage).
Additional Resources
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