IRS Announces Adjusted HSA Numbers for 2021 - Ahola

In Rev. Proc. 2020-32, the IRS provides the 2021 inflation-adjusted amounts for Health Savings Accounts. These changes are for calendar year 2021:

• The annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,600.
• The annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,200.
• A “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $7,000 for self-only coverage or $14,000 for family coverage

HSAs are savings account that employees can use with a high-deductible health plan to help cover higher deductibles and copays. There are multiple advantages to such a system. Money in HSAs can be used for a wide range of medical expenses, including — but not limited to — the deductibles under the HDHPs. Qualified medical expenses also include dental services, vision care, prescription drugs, co-pays, psychiatric treatments and other qualified medical expenses not covered by a health insurance plan.

Ahola’s wide range of talent management tools makes managing your workforce benefits a breeze—and improves employee engagement in the process. Thanks to our HCM platform, benefits administration capabilities are completely integrated with payroll and human resources, giving you powerful insight into your workforce. Our analytical tools make it easy to evaluate key data across the board, enabling you to make informed decisions. Smoothing out the complexities of eligibility, enrollment, and compliance not only saves you time and lowers risk, but also fosters a valuable partnership with your employees, so that you can focus on the job at hand.

Our Benefit Management tools and services include COBRA Administration, Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA), Premium Only Plans (POP), Transportation Reimbursement Administration, and Blanket Notice Mailings. Learn more.