The IRS issued Rev. Proc. 2020-32 to announce the 2021 inflation-adjusted amounts for contributions, plan deductibles and out-of-pocket expenses for health savings accounts (HSAs). Rev. Proc. 2020-32 sets the calendar year 2021 limits on HSA contributions at $3,600 for an individual with self-only coverage and $7,200 for an individual with family coverage. In order to be eligible for an HSA, an individual’s coverage in a group health plan must be under a high deductible health plan (HDHP). The guidance provides that in calendar year 2021, HDHPs must have an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $7,000 for self-only coverage or $14,000 for family coverage.
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