Contribution limits for 2021 Health Savings Accounts (HSAs) will increase $50 for self-only coverage and $100 for family coverage, the IRS recently announced. HSA contribution and plan limits will increase to $3,600 for self-only coverage and $7,200 for family coverage. Changes to the limits are effective January 2021.
HSAs are tax-exempt accounts that help people save money for eligible medical expenses. To qualify for an HSA, the policyholder must be enrolled in an HSA-qualified, high deductible health plan (HDHP), must not be covered by other non-HDHP health insurance or Medicare, and cannot be claimed as a dependent on a tax return.
For questions, contact your Bukaty benefits consultant at 913.345.0440.