Because an HSA is a bank account, anyone can contribute to it, including you, your employees and your employees’ family or friends. No matter who puts money in, there’s a limit to what can be contributed each year.

High-deductible health plan limits

To have an HSA, you have to have a high-deductible health plan (HDHP). HDHPs set limits for how much members pay for health care services before the health insurance starts paying. 

 

2021

2020

Change

HSA contribution limit (employer + employee) 

Individual: $3,600

Family: $7,200

Individual: $3,550

Family: $7,100

Individual: +$50 

Family: +$100

HDHP minimum deductibles 

Individual: $1,400

Family: $2,800 but not less than $2,800 per person

Individual: $1,400

Family: $2,800 but not less than $2,800 per person

No change

HDHP maximum out-of-pocket amounts (deductibles, copayments and other amounts, but not premiums)

Individual: $7,000

Family: $14,000 but no more than $8,550 a person

Individual: $6,900

Family: $13,800 but no more than $8,150 a person

Individual: +$100  

Family: +$200  

HHS annual out-of-pocket limit

Individual: $8,550

Family: $17,100 but no more than $8,550 a person

Individual: $8,150

Family: $16,300 but no more than $8,150 per person

Individual: +$400

Family: +$800

HSA catch-up contributions (age 55 or older)1
$1,000 $1,000 No change2


1
Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
2Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require legislative change.

Tax information and implications

There are different tax implications for the self-employed, partnerships or S-Corps. If you have questions about HSAs and tax implications, contact your accountant or refer to IRS Notice 2005-8.

Using Form 8889

Make sure your employees file Form 8889 each year they have an HSA. This form tells the IRS about all contributions and distributions made during the year and allows the account holder to list any after-tax contributions so they receive an "above-the-line" deduction.