2021 Inflation Adjusted Amounts for HSAs

The IRS released the inflation adjustments for health savings accounts (HSAs) and their accompanying high deductible health

plans (HDHPs) effective for calendar year 2021. Most limits increased from 2020 amounts.

For calendar year 2021, the limitation on deductions for an individual with self-only coverage under a high deductible health

plan is $3,600. For calendar year 2021, the limitation on deductions for an individual with family coverage under a high

deductible health plan is $7,200.

For calendar year 2021, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less

than $1,400 for self-only coverage or $2,800 for family coverage (unchanged from 2020), and the annual out-of-pocket

expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,000 for self-only coverage or

$14,000 for family coverage.

Non-calendar year plans: In cases where the HDHP renewal date is after the beginning of the calendar year (i.e., a fiscal year

HDHP), any required changes to the annual deductible or out-of-pocket maximum may be implemented as of the next renewal date.

Individuals who are age 55 or older and covered by a qualified high deductible health plan may make additional catch-up

contributions each year until they enroll in Medicare. The additional contribution, as outlined by the statute, is $1,000 for 2009 and thereafter.