Rev. Proc. 2020-32: HSA inflation-adjusted amounts for 2021

Rev. Proc. 2020-32: HSA inflation-adjusted amounts 2021

The IRS today released an advance version of Rev. Proc. 2020-32 that provides the inflation-adjusted amounts for health savings accounts (HSAs) for calendar year 2021.

1000

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Rev. Proc. 2020-32 [PDF 10 KB] provides the annual limitation on deductions under section 223(b)(2)(A) and (B) for, respectively:

  • An individual with self-only coverage under a high deductible plan—$3,600 (an increase from $3,550 for 2020) 
  • An individual with family coverage under a high deductible plan—$7,200 (an increase from $7,100 for 2020) 


For calendar year 2021, a “high deductible health plan” is defined under section 223(c)(2)(A) 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 sum of the annual deductible plus annual out-of-pocket expenses—such as co-payments or other amounts, but not premiums—does not exceed $7,000 for self-only coverage (an increase from $6,900 for 2020) or $14,000 for family coverage (an increase from $13,800 for 2020).


Read TaxNewsFlash for the HSA amounts adjusted for inflation for 2020.

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