The IRS released Revenue Procedure 2020-32 on May 20, 2020 announcing the cost-of-living adjustments (COLAs) applicable to health savings accounts (HSAs) for the calendar year 2021. The changes include an increase in the contribution limits applicable to eligible individuals who have self only or family high-deductible health plan (HDHP) coverage. The annual contribution limit for an individual with self-only coverage under a high deductible health plan was raised from $3,550 to $3,600 or $4,600 for those eligible for catch-up contributions. For an individual with family coverage under a high deductible health plan, the annual contribution limit was raised from $7,100 to $7,200 or $8,200 for those eligible for catch-up contributions. The minimum annual deductible remains at $1,400 for self-only coverage and $2,800 for family coverage, while the annual out-of-pocket maximum was raised from $6,900 to $7,000 for self-only coverage and from $13,800 to $14,000 for family coverage.
