Health Savings Accounts for 2021

Recently, the IRS announced next year’s contribution limits for health savings accounts (HSAs), as well as requirements for high-deductible health plans (HDHPs) to which HSAs must be linked (Rev. Proc. 2020-32).

For 2021, the maximum deductible contribution to an HSA is $3,600 ($50 more than in 2020) for self-only coverage, or $7,200 ($100 more than in 2020) for family coverage.  The annual contribution limit is $1,000 higher if you are age 55 by the end of the year but not on Medicare. However, if both spouses meet this age requirement, they must have separate HSAs to each contribute an additional $1,000. Starting with the month you enroll in Medicare, you may not make any further HSA contributions.

You can only contribute to an HSA if you have health coverage through an HDHP. To be an HDHP in 2021, a self-only coverage plan must have a minimum annual deductible of $1,400 (unchanged from 2020), and an out-of-pocket limit (excluding premiums) of $7,000 (up from $6,900 in 2019). For family coverage, the minimum annual deductible is $2,800 (unchanged from 2020), and the cap on out-of-pocket costs (excluding premiums) is $14,000 (up from $13,800).