The IRS has released Revenue Procedure 2020-32 announcing the HSA contribution limit increases for 2021.

• The 2021 HSA contribution limit for individual coverage will increase by $50 to $3,600.

• The 2021 HSA contribution limit for family coverage (employee plus at least one other covered) will increase by $100 to $7,200.

The catch-up contribution limit of $1,000 is fixed by law and does not adjust for inflation.

The Revenue Procedure also includes the 2021 calendar year minimum deductible and out-of-pocket maximums allowed for a plan to qualify as a high deductible health plan (HDHP)the required coverage for an individual to be eligible to make or receive HSA contributions.

• The 2021 minimum deductible for individual coverage will remain the same at $1,400.

• The 2021 minimum deductible for family coverage will remain the same at $2,800.

• The 2021 maximum out-of-pocket limit for individual coverage will increase by $100 to $7,000.

• The 2021 maximum out-of-pocket limit for family coverage will increase by $200 to $14,000.

Other Recent HDHP/HSA-Related Changes

CARES Act Makes Multiple HDHP/HSA Changes:

• https://www.newfront.com/blog/how-the-cares-act-affects-employee-benefits

• HDHPs Can Provide First-Dollar Telehealth Services

• Tax-Free HSA Distributions for OTC Medicines and Drugs Without a Prescription

• Tax-Free HSA Distributions for Menstrual Care Products

IRS Expands Definition of Preventive Care for HDHPs:

• https://www.newfront.com/blog/irs-expands-definition-of-preventive-care-for-hdhps

Recent COVID-19 Alerts

Major Employee Benefits Timeframe Extensions Announced for COVID-19 National Emergency:

• https://www.newfront.com/blog/major-employee-benefits-timeframe-extensions-announced-for-covid-19-national-emergency

Full HDHP/HSA and COVID-19 Guide

• Newfront Go All the Way With HSA Guide