The IRS recently released Rev. Proc. 2020-32, which outlines the inflation adjusted amounts for 2021 relevant to health saving accounts (HSAs) and high deductible health plans (HDHPs). The new limits are summarized in the table below.

Annual HSA Contribution Limit
(employer and employee)
Self-only: $3,600
Family: $7,200
Self-only: $3,550
Family: $7,100
Self-only: +$50
Family: +$100
HSA Catch-Up Contributions
(age 55 or older)
$1,000$1,000No change
Minimum Annual HDHP Deductible Self-only: $1,400
Family: $2,800
Self-only: 1,400
Family: $2,800
No change
Maximum Out-of-Pocket for HDHP
(deductibles, co-pays & other
amounts except premiums)
Self-only: $7,000
Family: $14,000
Self-only: $6,900
Family: $13,800
Self-only: +$100
Family: +$200

Next Steps for Employers

As employers prepare for the 2021 plan year, they should keep in mind the following rules and ensure that any plan materials and participant communications reflect the new limits: 

  • HSA eligible employees can now contribute up to $3,600 (for self-only coverage) and $7,200 (for family coverage).
  • The 2021 minimum annual deductible for HDHPs has not changed from 2020. HDHPs cannot have a deductible that is lower than the minimum HDHP deductible of $1,400 (for self-only coverage) and $2,800 (for family coverage).
  • The out-of-pocket maximum for HDHPs cannot be higher than $7,000 (for self-only coverage) and $14,000 (for family coverage).

Additional Resources

IRS Revenue Procedure 2020-32

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Emerald Law – Emerald is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music and writing non-fiction.