2021 HSA Contribution Limit
For 2021, the HSA Contribution Limit figures are $3,600 (Self-only), $7,200 (Family), $1,400 (HDHP minimum deductible, self-only) and 4 more figures below.
| Item | Self-only | Family | Age 55 and over |
|---|---|---|---|
| HDHP minimum deductible | $1,400 | $2,800 | - |
| HDHP out-of-pocket maximum | $7,000 | $14,000 | - |
| Catch-up limit | - | - | +$1,000 |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2021-01-01Source: Rev. Proc. 2020-32 (IRS)Verified 2026-09-03
Catch-up limit, age 55 and overSource: Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)Verified 2026-09-03
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Self-only | $3,550 | $3,600 | +$50 (+1.4%) |
| Family | $7,100 | $7,200 | +$100 (+1.4%) |
| HDHP minimum deductible, self-only | $1,400 | $1,400 | +$0 (+0.0%) |
| HDHP minimum deductible, family | $2,800 | $2,800 | +$0 (+0.0%) |
| HDHP out-of-pocket maximum, self-only | $6,900 | $7,000 | +$100 (+1.4%) |
| HDHP out-of-pocket maximum, family | $13,800 | $14,000 | +$200 (+1.4%) |
| Catch-up limit, age 55 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
HDHP minimum deductible
HDHP out-of-pocket maximum
Catch-up limit
+$1,000$14,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Individuals with self-only or family coverage under a high deductible health plan who contribute to a Health Savings Account under Section 223 of the Internal Revenue Code.
What changed this year, and why
For 2021, the IRS increased the HSA annual contribution limits and the HDHP out-of-pocket maximums. The contribution limit rose to $3,600 for self-only coverage (from $3,550 in 2020) and to $7,200 for family coverage (from $7,100 in 2020). The out-of-pocket maximum increased to $7,000 for self-only coverage (from $6,900) and $14,000 for family coverage (from $13,800). The HDHP minimum deductibles remained unchanged at $1,400 for self-only and $2,800 for family coverage.
Common questions
- What is an HSA?
- A Health Savings Account is a tax-advantaged account available to individuals covered by a high deductible health plan (HDHP). Contributions are deductible, earnings grow tax-free, and distributions for qualified medical expenses are not taxed.
- What qualifies as a high deductible health plan for 2021?
- For 2021, an HDHP is a health plan with an annual deductible of at least $1,400 for self-only coverage or $2,800 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $7,000 for self-only or $14,000 for family coverage.
Who can contribute, and what counts as an HDHP
To contribute to an HSA, you must be an eligible individual. This means you are covered under a high deductible health plan (HDHP) on the first day of the month, have no other prohibited health coverage, are not enrolled in Medicare, and cannot be claimed as a dependent on someone else's tax return. An HDHP is a health plan with a higher annual deductible than typical plans and a maximum limit on out-of-pocket expenses. For 2021, an HDHP must have a minimum annual deductible of $1,400 for self-only coverage or $2,800 for family coverage. The maximum annual deductible and out-of-pocket expenses (excluding premiums) cannot exceed $7,000 for self-only coverage or $14,000 for family coverage. Each eligible spouse must open a separate HSA; joint HSAs are not permitted.
To be an eligible individual and qualify for an HSA contri- bution, you must meet the following requirements. • You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. • You have no other health coverage except what is permitted under Other health coverage, later. • You aren’t enrolled in Medicare. • You can’t be claimed as a dependent on someone else’s 2021 tax return.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The age 55 catch-up contribution
If you are an eligible individual who is age 55 or older at the end of your tax year, your HSA contribution limit is increased by $1,000. However, if you are enrolled in Medicare, your contribution limit is zero beginning with the first month you are enrolled, so you cannot make the catch-up contribution for any month during which you have Medicare coverage.
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. For example, if you have self-only coverage, you can contribute up to $4,600 (the contribution limit for self-only coverage ($3,600) plus the additional contribution of $1,000). How- ever, see Enrolled in Medicare, later.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Excess contributions and the 6% excise tax
If you contribute more than the annual limit to your HSA, the excess amount is not deductible. Any excess contributions made by your employer are included in your gross income. If the excess is not reported in box 1 of Form W-2, you must report it as other income on your tax return. You must pay a 6% excise tax on excess contributions, and this tax applies each year the excess remains in the account. You can avoid the excise tax by withdrawing the excess contributions and any income earned on them by the due date of your tax return, including extensions. The withdrawn earnings must be included in your income for the year you withdraw them.
Excess contributions. You will have excess contribu- tions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contribu- tions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Quali- fied Plans (Including IRAs) and Other Tax-Favored Ac- counts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the ac- count.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The last-month rule and its testing period
The rule is an advance made against a promise. Someone whose HDHP coverage started part-way through the year would otherwise be held to the months they were eligible; if they were eligible on the first day of the last month of the tax year - December 1 for anyone on a calendar year - the law instead treats them as eligible for the whole of it, at whatever coverage they held on that day. That is how a person who only picked up family coverage in the autumn can still put in the full $7,200. The promise is the testing period. Eligibility has to hold from that December through the end of the 12th month that follows, so a 2021 claim runs to December 31, 2022. Break it - drop the HDHP, take other coverage, for any reason other than death or disability - and the advance is called back in. The contributions that only this rule made room for are included in income in the year eligibility lapses, not the year they were made, and a 10% additional tax is charged on that amount as well. Deciding to use the rule in December is therefore a decision about the whole of the following year.
Last-month rule. Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are consid- ered an eligible individual for the entire year. You are trea- ted as having the same HDHP coverage for the entire year as you had on the first day of the last month if you didn’t otherwise have coverage.TIPTIP Publication 969 (2021) Page 5 Testing period. If contributions were made to your HSA based on you being an eligible individual for the en- tire year under the last-month rule, you must remain an eli- gible individual during the testing period. For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2021, through December 31, 2022). If you fail to remain an eligible individual during the test- ing period, for reasons other than death or becoming disa- bled, you will have to include in income the total contribu- tions made to your HSA that wouldn’t have been made except for the last-month rule. You include this amount in your income in the year in which you fail to be an eligible individual. This amount is also subject to a 10% additional tax.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The 20% tax on non-qualified distributions
If you take a distribution from your HSA that is not used for qualified medical expenses, you must pay tax on the distribution and may owe an additional 20% tax on the taxable amount. You calculate this additional tax on Form 8889 and file it with your federal income tax return. The distribution itself is included in your gross income, and the 20% penalty is added on top of that. However, there is no additional 20% tax on distributions made after the date you become disabled, reach age 65, or die. Distributions used exclusively to pay or reimburse qualified medical expenses remain tax free. Amounts in your HSA that are not withdrawn continue to grow tax free and carry over from year to year.
Additional tax. There is an additional 20% tax on the part of your distributions not used for qualified medical ex- penses. Figure the tax on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. Exceptions. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
You, your employer, and anyone else can all contribute to the same account
An HSA belongs to the eligible individual, but it is not restricted to contributions from that person alone. For 2021, the employee, the employee's employer, or both may put money into the same HSA during the same year. A self-employed or unemployed individual may contribute to his or her own HSA, and family members or any other person may also make contributions on behalf of the eligible individual. All contributions must be made in cash. Even when the employer, family members, or someone else contributes, the total of every contribution to the account for the year is measured against the annual limit that applies to the individual's HDHP coverage, which is $3,600 for self-only coverage and $7,200 for family coverage in 2021. Employer contributions reduce the amount the individual may still contribute on his or her own behalf and still claim as a deduction.
Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s em- ployer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-em- ployed (or unemployed) individual, the individual can con- tribute. Family members or any other person may also make contributions on behalf of an eligible individual.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The form that reports every contribution and claims the deduction
To report and deduct Health Savings Account contributions for 2021, the account holder files Form 8889 along with Form 1040, 1040-SR, or 1040-NR. Form 8889 is the form that captures every contribution made for the year, whether from the individual, the employer, or another source. Contributions made between January 1, 2021, and April 15, 2022, that are designated for 2021 are all included on the 2021 return. Employer contributions and any qualified HSA funding distributions from an IRA also appear on the form. The trustee of the HSA sends Form 5498-SA, which shows the total contributions received, but the account holder is responsible for reporting all contributions correctly on Form 8889. The deduction is calculated on the form and flows to the individual's tax return, reducing taxable income for the year even when the taxpayer does not itemize deductions.
Form 8889. Report all contributions to your HSA on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. You should include all contributions made for 2021, including those made from January 1, 2021, through April 15, 2022, that are designated for 2021. Con- tributions made by your employer and qualified HSA fund- ing distributions are also shown on the form.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Money left in the account at year end is not lost
Unlike flexible spending accounts that operate on a use-it-or-lose-it basis, a Health Savings Account has no expiration date on unused funds. Any money contributed to the HSA stays in the account from year to year until the account holder chooses to use it for qualified medical expenses. There is no requirement to spend the balance by the end of the calendar year or by the end of a plan year. If contributions exceed medical costs in a given year, the remainder carries forward indefinitely. The balance continues to grow because the interest and other earnings on the assets held in the account are tax free. This feature makes the HSA useful not only for current medical costs but also as a long-term savings vehicle. An individual who maxes out contributions for many years can build up a substantial balance that remains available for health expenses in retirement or at any later date.
The contributions remain in your account until you use them.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Enrolling in Medicare shuts off your contribution limit
An eligible individual who enrolls in Medicare can no longer contribute to a Health Savings Account. The contribution limit becomes zero starting with the first month of Medicare enrollment, and this rule applies even when Medicare coverage is retroactive. If a person delayed applying for Medicare and later the enrollment is backdated, any HSA contributions made during the retroactive period are treated as excess contributions, which are subject to tax and potential penalty. For 2021, the annual contribution limit is $3,600 for self-only HDHP coverage and $7,200 for family HDHP coverage. Once Medicare begins, the individual's limit for the months covered by Medicare is zero, so the annual contribution must be prorated across only the months before Medicare coverage started. An individual can keep the HSA and use the existing balance for qualified medical expenses, including Medicare premiums once enrolled, but no new contributions are permitted for any month of Medicare coverage.
Enrolled in Medicare. Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. This rule applies to periods of retroactive Medicare coverage. So, if you delayed applying for Medicare and later your enrollment is backdated, any contributions to your HSA made during the period of retroactive coverage are considered excess.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2020-32 (IRS)
- Self-only
For calendar year 2021, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,600.
- Family
For calendar year 2021, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,200.
- HDHP minimum deductible, self-only
a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage
- HDHP minimum deductible, family
or $2,800 for family coverage, and the
- HDHP out-of-pocket maximum, self-only
the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,000 for self-only coverage
- HDHP out-of-pocket maximum, family
or $14,000 for family coverage.
Publication 969 (2021), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
- Catch-up limit, age 55 and over
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.