Benefits Compliance, Employee Benefits Compliance, HRAs & HSAs

IRS Releases 2021 Plan Year HSA and HDHP Limits

The Internal Revenue Service (IRS) released Revenue Procedure 2020-32, announcing the 2021 inflation adjusted limits for Health Savings Accounts (HSA) and High-Deductible Health Plans (HDHP). Listed below.

HSA Contribution Limits

  • Self-only HDHP Coverage: $3,600 (up from $3,550 in 2020)
  • Family HDHP Coverage: $7,200 (up from $7,100 in 2020)

HDHP Minimum Deductibles

  • Self-only HDHP Coverage: $1,400 (unchanged from 2020)
  • Family HDHP Coverage: $2,800 (unchanged from 2020)

HDHP Out-of-Pocket Maximums (Coinsurance/Copayments/Deductibles)

  • Self-only HDHP Coverage: $7,000 (up from $6,900 in 2020)
  • Family HDHP Coverage: $ 14,000 (up from $13,800 in 2020)

Action May be Required

Employers sponsoring these plans should ensure they use the new limits for their 2021 plan year. These new limits must be reflected in the 2021 plan documents and benefits enrollment materials. Be sure the updated Summary of Benefits and Coverage (SBC), which is required pursuant to the Affordable Care Act, is updated and provided 60 days prior to the beginning of the plan year.

 

This information is intended as educational only. Consult with your own legal and tax professional to ensure compliance with all applicable law.

 

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