IRS Announces 2021 HSA Limits, HDHP Guidelines
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.
- Employee-only coverage: $3,600 annual HSA contribution limit, $1,400 minimum deductible, $7,000 out-of-pocket maximum
- 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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As always, American Fidelity is committed to providing our customers with up-to-date information on employee health and welfare benefits compliance. For more information about this and other regulatory developments, visit our website at HCReducation.com.