The increases, based on inflation, are once again modest.

The IRS has released its contribution limits for health savings accounts in 2021, and with years past, the limits continue to tick upward.

The IRS adjusts contribution limits for HSAs yearly based on inflation. For 2021, those limits will be:

  • $3,600 for individual coverage (an increase of $50 from 2020)
  • $7,200 for family coverage (an increase of $100 from 2020)

“The IRS limit increases are in line and similar to prior year increases, despite the COVID environment,” says Harrison Stone, general counsel at ConnectYourCare.

The minimum deductibles for a qualifying high-deductible health care plan remain unchanged, at $1,400 for an individual and $2,800 for a family. Maximum out-of-pocket expenses have gone up $100 and $200 for individuals and families, respectively, to $7,000 and $14,000.

In addition, consumers over age 55 have the option to contribute an extra $1,000 annually as a catch-up contribution.

HSAs and HDHPs have seen some other changes this year, most recently in March when the passage of the CARES act expanded eligible HSA expenses to include over-the-counter drugs. The IRS also issued guidance allowing employers and health plans to cover testing for COVID-19 prior to the deductible requirements of HDHPs.