Every year, the IRS is required to publish limits for Health Saving Accounts (HSAs) and High Deductible Health Plans (HDHPs) by June 1st for the following year. On May 20, 2020, the IRS released the inflation-adjusted limits, which go into effect January 1, 2021:
An individual can contribute $3,600 to their HSA in 2021, which is up from $3,550 for 2020.
A family can contribute $7,200 to their HSA, up from $7,100 in 2020.
If you will be 55 or older by December 31, you can put away an additional $1,000 per year.
Remember, you can only contribute to an HSA if you're in a qualified high-deductible health plan. In 2021, the minimum annual deductible for HDHPs has not changed - $1,400 for an individual and $2,800 for a family.
If you have any questions, please contact us at (920) 215-4995 or email mackenzie@uiadvisors.com.