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June 7, 2020

Health Savings Accounts: 2021 Inflationary Adjustments

The IRS released the 2021 inflationary adjustments relating to health savings accounts (Rev. Proc. 2020-32). For 2021, the individual and family contribution limits and out-of-pocket limits will increase.  The annual high deductible health plan (HDHP) deductible limits remain the same as 2020 limits.

 

Individual/Self Only

Family

2021

2020

2021

2020

Contribution Limit

$3,600

$3,550

$7,200

$7,100

HDHP Annual Deductible

$1,400

$1,400

$2,800

$2,800

HDHP Annual Out-of-Pocket Limit*

$7,000

$6,900

$14,000

$13,800

 

*Note: The out-of-pocket (OOP) limits applicable to high deductible health plans used in conjunction with HSAs differ slightly from the Affordable Care Act’s imposed OOP limits.  For 2021, the OOP limits under these plans will increase to $8,550 for self-only; $17,100 for other than self-only coverage. For 2020, the OOP limit is $8,150 for self-only; $16,300 for other than self-only coverage.

Also important to remember that, under the ACA, for a family plan, no individual can be subject to an OOP greater than the individual OOP limit.

General reminders about HSA limits:

  • The $1,000 catch up contribution available to accountholders aged 55 and over is not tied to a cost of living adjustment and thus, remains at $1,000.
  • With regard to the family deductible, any embedded deductible can be no lower than the minimum family statutory deductible limit.

 

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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