Now part of the Flores & Associates Team
Menu

IRS Releases 2021 Limits for HSAs

May 21, 2020

Home // News & Updates // IRS Releases 2021 Limits for HSAs

The Internal Revenue Service announced new, adjusted for inflation, higher contribution limits for Health Savings Accounts for 2021 today. You’ll be allowed to contribute $3,600 for individual coverage for 2021, up from $3,550 for 2020, or $7,200 for family coverage, up from $7,100 for 2020.

For calendar year 2021, a “high deductible health plan” is defined under § 223(c)(2)(A) 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, 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

There’s still time to take advatage of The CARES Act extended tax day deadline of July 15, 2020 if you  haven’t contributed to your maximum allowed for 2019.