While some may view the increases as modest, every dollar matters right now for consumers when it comes to saving.
HUNT VALLEY, Md. (PRWEB) May 22, 2020
In an effort to provide needed guidance to brokers and employers, ConnectYourCare—a national leader in consumer-directed health care account solutions—is announcing the inflation-adjusted limits for Health Savings Accounts (HSAs), set forth annually by the Internal Revenue Service (IRS).
The new 2021 HSA contribution limits include:
Maximum HSA Contribution Level
$3,600 for individual coverage
$7,200 for family coverage
Minimum Deductible for Qualifying High Deductible Health Plan (HDHP)
$1,400 for individual coverage
$2,800 for family coverage
Maximum Out-of-Pocket Expenses for HDHP
$7,000 for individual coverage
$14,000 for family coverage
The new limits increase the pre-tax amounts individuals and families may contribute to their HSA over 2020 limits by $50 and $100, respectively, though the minimum deductible for qualifying health plans remains the same from 2020 to 2021. Out-of-pocket maximums are up $100 for individuals and $200 for families over 2020 limits.
Worth noting, those who have an HSA and are over age 55 can save an extra $1,000 annually as a “catch-up” contribution.
“The IRS limit increases are in line and similar to prior year increases, despite the COVID environment,” says Harrison Stone, General Counsel, ConnectYourCare.
“While some may view the increases as modest, every dollar matters right now for consumers when it comes to saving,” he adds.
In addition, as part of the CARES Act that was signed into law at the end of March, Congress is also now allowing consumers to use an HSA or a flexible spending account (FSA) to pay for over-the-counter medications without a prescription. The Affordable Care Act required a prescription for such purchases. The CARES Act also allows the use of HSAs for telehealth and other remote care services until Dec. 31, 2021.
As a consumer-directed health care pioneer and nationally recognized industry leader, ConnectYourCare delivers a comprehensive solution supporting health care savings accounts and expanded tax-advantaged offerings. Through continuous evolution, highly rated service, and domain expertise across the benefits, banking, and payments spectrum, we are revolutionizing the connection between health and wealth. ConnectYourCare creates greater participant value through intuitive account management; greater employer value and savings through dynamic, outcome-based workflows and tools; and greater partnership value through deep engagements to meet goals—with proprietary, cloud-based technology and a modern, intelligent platform as its foundation.
Trusted by leading organizations, spanning all industries and sizes, we are making it easier for people to manage care, so they can enjoy life. For more information, visit https://www.connectyourcare.com/.