rp-20-32.pdf

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# 26 CFR 601.602: Tax forms and instructions. (Also Part 1, §§ 1, 223.)

Rev. Proc. 2020-32

## SECTION 1. PURPOSE

### This revenue procedure provides the 2021 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code. SECTION 2. 2021 INFLATION ADJUSTED ITEMS

Annual contribution limitation. For calendar year 2021, the annual limitation on
deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high
deductible health plan is $3,600. For calendar year 2021, the annual limitation on
deductions under § 223(b)(2)(B) for an individual with family coverage under a high
deductible health plan is $7,200.

High deductible health plan. For calendar year 2021, a "high deductible health
plan" is defined under § 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 the
annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not
premiums) do not exceed $7,000 for self-only coverage or $14,000 for family coverage.

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# SECTION 3. EFFECTIVE DATE

This revenue procedure is effective for calendar year 2021.

## SECTION 4. DRAFTING INFORMATION

The principal author of this revenue procedure is Bill Ruane of the Office of
Associate Chief Counsel (Income Tax & Accounting). For further information regarding
§ 223 of the Code and HSAs, contact William Fischer at (202) 317-5500 (not a toll-free
number). For further information regarding the calculation of the inflation adjustments in
this revenue procedure, contact Mr. Ruane at (202) 317-4718 (not a toll-free number).