The Internal Revenue Service has raised contribution limits to health savings accounts for 2021.
An individual employee may contribute $3,600 compared with $3,550 for the current year, the IRS announced May 20. An employee with a family may contribute $7,200 in 2021, compared with $7,100 this year.
An employee age 55 or older may make an extra $1,000 "catch-up" contribution in 2021, the same as this year.
HSAs are available only to employees in high-deductible health-care plans.
In 2019, HSA assets grew to $65.9 billion as of Dec. 31, of which $15.7 billion was invested, according to Devenir Group LLC, Minneapolis, an HSA researcher and investment provider. Total HSA assets rose 22.5% from a year earlier, while invested assets climbed 53.9%.
