Your health savings account (HSA) packs more punch than ever.
The IRS announced higher HSA limits for the 2021 tax year, which means opportunity to save even more.
2021 maximum HSA contributions
$1,000 Catch-up contributions (55 and older)
Before you look too far ahead, it’s a good idea to make sure you’ve maximized your 2019 contributions. Because of COVID-19, the IRS extended the tax filing deadline to July 15, 2020. HSA members with individual coverage can contribute up to $3,500, those with family coverage can contribute up to $7,000 and those 55 and older can contribute an extra $1,000.
Take a moment to confirm that you’re on pace for your 2020 targets, too. Given social distancing, most of us are spending a little less than usual. Consider moving that savings into your HSA. The more you contribute, the faster you can accelerate long-term health savings.
The IRS also announced 2021 HSA-qualified health plan limits.
2021 high-deductible health plan limits
Maximum out-of-pocket expenses
Discover why HSAs are the new retirement strategy.
HealthEquity does not provide legal, tax, financial or medical advice. Always consult a professional when making life-changing decisions.