The Internal Revenue Service (IRS) recently announced in Revenue Procedure 2020-32 the contribution limits for Health Savings Accounts (HSAs), and guidelines for HSA-Qualified High Deductible Health Plans (HDHPs) for 2021. These amounts are adjusted for inflation each year. Employers may want to review and consider incorporating these new limits.
2021 Limits
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Employee-only coverage: $3,600 annual HSA contribution limit, $1,400 minimum deductible, $7,000 out-of-pocket maximum
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Family coverage: $7,200 annual HSA contribution limit, $2,800 minimum deductible, $14,000 out-of-pocket maximum
Employers may wish to remind employees that recent legislation has extended the time they have to make HSA contributions for 2019. The deadline for making 2019 HSA contributions has been extended to July 15, 2020, to align with the extended federal income tax filing and payment deadline.
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