2021 HSA Contribution Limits Announced by IRS

2021 HSA contribution limits

The Internal Revenue Service (IRS) published the 2021 rates for Health Savings Accounts (HSAs) on Wednesday, May 20. The 2021 HSA contribution limits have increased as well as the maximum out-of-pocket limits for high deductible health plans. Learn more below.

2021 HSA Contribution Limits

For 2021, the HSA contribution limits have increased due to inflation. An individual with self-only coverage under an HDHP can contribute up to $3,600, a $50 increase. For those with family coverage, the new limit is $7,200, a $100 annual increase.

2021 HSA Contribution Limits

Single CoverageFamily CoverageCatch Up Contribution
(Age 55+)
2021$3,600 (+ $50)$7,200 (+ $100)Limit + $1,000
2020$3,550$7,100Limit + $1,000
2019$3,500$6,900Limit + $1,000

For those 55 years and older, the 2021 HSA catch up contribution limit remains the same at $1,000. With a catch-up contribution, people who have self-only coverage can contribute up to $4,600 in 2021; those who have family coverage can contribute a maximum of $8,200.

2021 HDHP Minimum Deductibles and Out-of-Pocket Limits

The IRS did not raise the annual minimum deductible for high deductible health plans. The rate cannot be less than $1,400 for self-only coverage, and $2,800 for family coverage.

Out-of-pocket maximums went up, however. For self-only coverage, the maximum increased by $100, from $6,900 to $7,000. For family coverage, the maximum increased by $200, from $13,800 to $14,000.

HDHP Minimum Deductibles and Out-of-Pocket Maximums

20212020
Self Only CoverageHDHP Min. Deductible$1,400$1,400
Out-of-Pocket Max$7,000 (+$100)$6,900
Family CoverageHDHP Min. Deductible$2,800$2,800
Out-of-Pocket Max$14,000 (+$200)$13,800

Important HSA Notes

  • The 2020 tax filing deadline was extended by three months. HSA owners have until July 15 to contribute for the 2019 year. Learn more about 2019 HSA contribution limits.
  • HSA funds may be used for a long list of eligible healthcare expenses. OTC medications and menstrual care products are now HSA eligible expenses.
  • An HSA is owned solely by the account owner. The HSA owner may use the benefit funds to pay for eligible expenses for themselves and their dependents.
  • If married spouses each have self-only coverage, they can only contribute up to the self-only maximum.
  • Account owners may fund their HSA from a personal IRA (traditional or Roth) once in their lifetime. The contribution counts towards the annual contribution limit.

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