The increases,
based on inflation, are once again modest.
The IRS has released its contribution
limits for health savings accounts in 2021, and with years
past, the limits continue to tick upward.
The IRS adjusts contribution limits for HSAs
yearly based on inflation. For 2021, those limits will be:
·
$3,600 for individual
coverage (an increase of $50 from 2020)
·
$7,200 for family
coverage (an increase of $100 from 2020)
“The IRS limit increases are in line and
similar to prior year increases, despite the COVID environment,” says Harrison
Stone, general counsel at ConnectYourCare.
The minimum deductibles for a qualifying
high-deductible health care plan remain unchanged, at $1,400 for an individual
and $2,800 for a family. Maximum out-of-pocket expenses have gone up $100 and
$200 for individuals and families, respectively, to $7,000 and $14,000.
In addition, consumers over age 55 have the
option to contribute an extra $1,000 annually as a catch-up contribution.
HSAs and HDHPs have seen some other changes
this year, most recently in March when the passage of the CARES act expanded
eligible HSA expenses to include over-the-counter drugs. The IRS also issued guidance allowing employers and health plans
to cover testing for COVID-19 prior to the deductible requirements of HDHPs.
Read more:
Emily Payne is managing editor at BenefitsPRO. A
Wisconsin native, she spent the past eight years writing and editing for
various athletic and fitness publications. She holds an English degree and
Business certificate from the University of Wisconsin.
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