News Alert: IRS Releases 2021 HSA Limits

On May 20, 2020, the IRS released 2021 limits for high-deductible health plans (HDHPs) and health savings accounts (HSAs).

The Employers Council on Flexible Compensation outlined the limits for HSAs and HDHPs for 2021, as compared to 2020, as follows:

2020
Rev. Proc. 2019-25
2021
Rev. Proc. 2020-32
Annual limitation on deductions to an HSA – self-only coverage $3,550 $3,600
Annual limitation on deductions to an HSA – family coverage $7,100 $7,200
HDHP – self-only coverage

Annual deductible not less than:

Annual out-of-pocket expenses do not exceed:

$1,400 $1,400*
$6,900 $7,000
HDHP – family coverage

Annual deductible not less than:

Annual out-of-pocket expenses do not exceed:

$2,800 $2,800*
$13,800 $14,000

 

You can read the full Revenue Procedure 2020-32 here.

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