2021 HSA Contribution Limit
For 2021, the HSA Contribution Limit is $3,600 (Self-only), $7,200 (Family), $1,400 (HDHP minimum deductible, self-only) and 3 more figures below.
| Item | Self-only | Family |
|---|---|---|
| HDHP minimum deductible | $1,400 | $2,800 |
| HDHP out-of-pocket maximum | $7,000 | $14,000 |
Effective 2021-01-01Source: Rev. Proc. 2020-32 (IRS)Verified 2026-08-29
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%) |
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. For example, if you have self-only coverage, you can contribute up to $4,600 (the contribution limit for self-only coverage of $3,600 plus the additional contribution of $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
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 considered an eligible individual for the entire year. You are treated 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. To use this rule, you must remain an eligible individual during a testing period that begins with the last month of your tax year and ends on the last day of the 12th month following that month. For example, if you qualified on December 1, 2021, the testing period runs through December 31, 2022. If you fail to remain eligible during the testing period for reasons other than death or disability, you must include in income the total contributions made to your HSA that would not have been made except for the last-month rule, and this amount is also subject to a 10% additional tax.
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)
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.