The IRS has released Revenue Procedure 2020-32, which provides information on the limits for Health Savings Accounts (HSAs) for 2021. The annual contribution limitation on deductions for individuals with self-only coverage under a high deductible health plan will be $3,600 (up from $3,550 in 2020). The deduction limitation for an individual with family coverage will be $7,200 (up from $7,100 in 2020).
Minimum Deductible for HDHP:
In order for a health insurance plan to be considered a “High Deductible Health Plan” for 2021, the deductible must be at least $1,400 for self-only coverage and $2,800 for family coverage (no change from 2020).
Maximum Out-of-Pocket:
For 2021, out-of-pocket expenses may not exceed $7,000 for self-only coverage and $14,000 for family coverage (up from $6,900 and $13,800 in 2020, respectively).
These changes will go into effect for calendar year 2021. Please note that these limits are subject to change.
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