8. HSA Contribution Limits Go Up
If you’re worried about future medical expenses or if you just want to ensure you’ll have enough money for unforeseen circumstances when you retire, it’s a good idea to open an HSA.
These allow you to save money in special, tax-advantaged accounts.
In 2021, contribution limits are going up, meaning you’ll be able to stash away $3,600 for self-only coverage and $7,200 for family coverage. The self-only coverage limit used to be $3,550 while the family coverage used to be $7,150 in 2020.
9. Estate Tax Exemption Limits Rise; Gift Tax Limits Remain the Same
In 2020, the estate tax exemption limit sat at $11.58 but in 2021 that exemption is going to rise to $11.7.
But don’t worry, at least gift tax limits are less confusing by staying the same… since 2018! The gift tax annual exclusion remains $15,000.