The Internal Revenue Service (IRS) announced the following on May 20, 2020, applicable for the tax year 2021:
The annual maximum has increased for the Individual and Family Health Savings Accounts (HSA).
- The HSA Individual level contribution limit will be increased to $3,600 from $3,550. The HSA Family level contribution limit will be increased to $7,200 from $7,100.
- The HDHP minimum Individual deductible remains at $1,400. The HDHP Family minimum deductible remains at $2,800.
- HDHP Out-Of-Pocket Adjusted Limit for Individual will be changed to $7,000 up from $6,900. The HDHP Out-Of-Pocket Adjusted Limit for Family will be changed to $14,000 up from $13,800.
Any employees impacted may want to review their current and future deductions and make any needed adjustments. The IRS allows employees to make changes to their HSA contributions on a monthly basis.