IRS Publishes 2021 HSA Max Inflation Adjustment

Each year, the Internal Revenue Service adjusts its annual contribution limitations for health savings accounts to account for inflation.

The Internal Revenue Service (IRS) has published Revenue Procedure 2020-32.

The new revenue procedure provides the 2021 inflation adjusted amounts for health savings accounts (HSAs), as determined under Section 223 of the Internal Revenue Code.

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For calendar year 2021, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan (HDHP) is $3,600. The annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $7,200.

The new limit for self-only coverage is up $50 from the 2020 limits, while the family limit has increased by $100.

Under the new Revenue Procedure 2020-32, for calendar year 2021, 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 for which “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.”

The revenue procedure is effective for calendar year 2021.

FPA Upgrades Website, Unveils New Branding Elements

The Financial Planning Association says it is making the improvements at a time when Americans need financial planning assistance more than ever before.

The Financial Planning Association (FPA) has announced the launch of a revamped website (financialplanningassociation.org) and has also unveiled new branding elements. FPA says the upgrades come at a time when financial planning is more critical than ever and when practitioners need the support of their peers and community to provide the best possible service to their clients.

FPA says the enhanced website will provide members with easier access to the benefits of FPA membership, which it says are growth, inspiration, amplification and belonging. It also offers tools, resources and insights.

Some of the resources on the website are available to non-members, but the majority are only accessible to FPA members, including access to the “Journal of Financial Planning,” live and on-demand webinars and other interactive learning content, the FPA Connect online community and FPA Knowledge Circles and other affinity groups.

“As the professional home for the financial planning community, our website needs to better support our members and their desire to connect with the content they want, when they need it,” says FPA Executive Director and Chief Executive Officer Lauren Schadle. “Our team worked tirelessly over the past year to engineer a new web presence for FPA that will continue to grow, expand and evolve in a way that will make it a go-to source for any financial planning practitioner who is ready to pursue master in the practice of financial planning.”

The new website is mobile-friendly. In conjunction with this, FPA’s new brand promise is to “Change Tomorrows.”

“Our members do what they do to transform lives and make a genuine difference to the people they serve, and they are part of FPA because they care about becoming better financial planners,” says FPA President Martin Seay. “That’s their passion. By changing tomorrows for our chapters, volunteers and members, we empower them to change tomorrows for the clients of today and the clients of the future.”

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