Gulfshore Insurance > Gulfshore Blog > Employee Benefits > IRS Releases 2021 Limits for Health Savings Accounts

Employee Benefits IRS Releases 2021 Limits for Health Savings AccountsThe Internal Revenue Service (IRS) has issued Revenue Procedure 2020-32 which includes maximum contribution, deductible and out-of-pocket maximum limits for Health Savings Accounts and HSA-compatible high deductible health plans (HDHP) for the 2021 calendar year. These amounts are updated each year to reflect cost-of-living adjustments.

What is an HSA and who is eligible?
An HSA is a tax-exempt savings account that employees can use to pay for qualified health expenses. To be eligible for an HSA, one must:

  • Be covered by a qualified high deductible health plan (HDHP)
  • Not have any disqualifying health coverage (non-HDHP)
  • Not be enrolled in Medicare
  • Not be claimed as a dependent on someone else’s tax return


The 2021 HSA max contributions have increased to: 

  • Single Coverage: $3,600 ($50 increase from 2020)
  • Family Coverage: $7,200 ($100 increase from 2020)


The 2021 HDHP Minimum Deductible*: 

  • Single Coverage: $1,400 ($0 change from 2020)
  • Family Coverage: $2,800 ($0 change from 2020)


2021 HDHP Maximum Out-of-Pocket Limit**: 

  • Single Coverage: $7,000 ($100 increase from 2020)
  • Family Coverage: $14,000 ($200 increase from 2020)


For those 55 and older, catch-up contributions remain at $1,000. 

* The deductible does not apply to preventative care services, nor to services related to COVID-19 testing. 

** If the HDHP is a non-grandfathered plan, a per-person limit of $8,550 also will apply due to ACA’s cost-sharing provision for essential health benefits.