Compliance FYI: 2021 HSA and HDHP Information

Compliance, Employee Benefits

On May 20, 2020 the IRS issued the limits for 2021 on Health Savings Accounts (HSAs) and the associated high deductible health plans (HDHPs) in Revenue Procedure 2020-32.

Health Savings Accounts

Minimum HDHP Deductible:    $1,400/single     $2,800/family

Maximum Contributions:    $3,600/single     $7,200/family

Out-of-Pocket Maximum:    $7,000/single     $14,000/family

It is important to note that all limitations have increased from 2019. 

REMINDER: The Affordable Care Act (ACA) out of pocket limits differ from the Internal Revenue Service (IRS) out-of-pocket limits for HSA qualified HDHPs.

Affordable Care Act – Out of Pocket Maximums

Out-of-Pocket Maximum 2021:    $8,550/single     $17,100/family

With the ACA limits, plans must apply the annual individual out-of-pocket (OOP) maximum for each individual in a family plan.  Employers offering HSAs, however, must make sure they satisfy the lower OOP maximums and not these higher ACA limits.

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