The IRS has announced 2021 inflation-adjusted amounts for contributions to Health Savings Accounts (HSAs). An HSA is a tax-exempt account funded with pretax dollars that can be used only for qualified medical expenses. However, an HSA must be coupled with a high-deductible health plan (HDHP). For calendar year 2021, to qualify as an HDHP, a plan must have a minimum deductible of $1,400 ($2,800 for family coverage) and a $7,000 cap on out-of-pocket expenses ($14,000 for family coverage). The 2021 annual contribution limitation for an individual with self-only coverage under a HDHP is $3,600; the amount is $7,200 for an individual with family coverage. Contact us with questions regarding HSAs. Call or visit our website for more information! www.mjscpa.com/
