The IRS has announced the annual inflation-adjusted limits on deductions for contributions to a health savings account (HSA) allowed for taxpayers with family coverage under a high-deductible health plan (HDHP) for 2021.
Under Sec. 223, individuals who participate in a HDHP can make a deduction for contributions to HSAs to help pay their medical expenses. The contribution deduction limit is subject to an annual inflation adjustment.
For 2021, the annual limit on deductible contributions is $3,600 for individuals with self-only coverage under a HDHP (a $50 increase from 2020) and $7,200 for family coverage (a $100 increase).