IRS Announces Inflation Adjustments to Health Savings Account Limits for 2021
May 20, 2020 – Today the Internal Revenue Service (IRS) issued 2021 inflation adjustments to health savings account (HSA) limits in Rev. Prc. 2020-32. This ruling increased the health savings account (HSA) annual contribution limit for self-only coverage to $3,600 for calendar year 2021, an increase of $50 over the 2020 limit of $3,550. The family contribution limit was also increased to $7,200 for calendar year 2021, an increase of $100 over 2020.
The Section §223 minimum deductible requirement for 2021 remained the same as 2020 at $1,400 for self-only and $2,800 for family coverage. Annual out-of-pocket expenses (including co-payments, deductibles, and other amounts, but excluding premiums) for 2021 may not exceed $7,000 for self-only coverage or $14,000 for family coverage.
| Annual Limits | 2019 | 2020 | 2021 |
|---|---|---|---|
| §223 Minimum Deductible | |||
| Employee Only | $1,350 | $1,400 | $1,400 |
| Family | $2,700 | $2,800 | $2,800 |
| HSA Contribution Limit | |||
| Employee Only | $3,500 | $3,550 | $3,600 |
| Family | $7,000 | $7,100 | $7,200 |
Please contact your business development partner or account manager at 800.532.3327 with questions regarding this adjustment.
About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com