Benefit News

IRS Announces 2021 HSA / High Deductible Health Plan Limits

May 22, 2020

The Internal Revenue Service (IRS) has released Revenue Procedure 2020-32 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for calendar year 2021. These limits include:

  • The maximum HSA contribution limit effective January 1, 2021;
  • The minimum deductible amount for HDHPs for 2021 (Note: higher minimum deductible amounts may apply for California insurance policies to comply with California state law requirements); and
  • The maximum out-of-pocket expense limit for HDHPs for 2021.

These limits vary based on whether an individual has self-only or family coverage under an HDHP. The following chart shows the HSA/HDHP limits for 2021 as compared to 2020. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation, and stays the same from year to year.

Type of Limits 2020 2021 Change
HSA Contribution Limit Self-only $3,550 $3,600 Up $50
Family $7,100 $7,200 Up $100
HSA Catch-up Contributions Age 55 or older $1,000 $1,000 No Change
HDHP Minimum Deductible Self-only $1,400 $1,400 No Change
Family $2,800 $2,800 No Change
HDHP Maximum Out-of-Pocket Self-only $6,900 $7,000 Up $100
Family $13,800 $14,000 Up $200

For additional information, please contact your Burnham Benefits Consultant or Burnham Benefits at 949-833-2983 or inquiries@burnhambenefits.com.


Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.

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