By: HUB’s EB Compliance Team

At the end of May, the IRS posted the 2021 limits for health savings accounts (“HSAs”) and high deductible health plans (“HDHPs”).  The 2021 figures and a comparison to the 2020 figures are below:

HSA Contributions

2021

2020

Self-Only:

$3,600

$3,550

Family:

$7,200

$7,100

 

HDHP Minimum Deductible

 

2021

 

2020

Self-Only:

$1,400

$1,400

Family:

$2,800

$2,800

 

HDHP Out-of-Pocket Maximum Limits

 

2021

 

2020

Self-Only:

$7,000

$6,900

Family:

$14,000

$13,800

 

Note that non-calendar year plans are not required to comply with the 2021 deductible and out-of-pocket maximum limits until their plans renew in 2021. However, since HSA contribution limits generally apply on a calendar year basis, employees are allowed to contribute within the 2021 calendar year an amount equivalent to the annual HSA maximum in the chart above if they have HDHP coverage for the entire 2021 calendar year.

Takeaways

Employers with HDHPs and allow payroll deduction contributions to HSAs should pay attention to these limits for their 2021 planning. Additionally, plans need to consider the 2021 out-of-pocket maximum limits under the Affordable Care Act and the Affordable Care Act’s embedded out-of-pocket maximum requirements.

If you have any questions, please contact your HUB Advisor.View more compliance articles in our Compliance Directory.

NOTICE OF DISCLAIMER

The information herein is intended to be educational only and is based on information that is generally available. HUB International makes no representation or warranty as to its accuracy and is not obligated to update the information should it change in the future. The information is not intended to be legal or tax advice. Consult your attorney and/or professional advisor as to your organization’s specific circumstances and legal, tax or other requirements.