On Wednesday, May 20, 2020 the Internal Revenue Service (IRS) released Revenue Procedure 2020-32 announcing the cost-of-living adjustments (COLAs) applicable to Health Savings Accounts (HSAs) for 2021.
After application of the COLA rules, changes for 2021 include an increase in the contribution limits applicable to individuals who have self only or family high-deductible health plan (HDHP) coverage. Additionally, though the minimum deductible amount that plays a role in determining whether a health plan is an HSA eligible HDHP will not increase for 2021, the maximum out-of-pocket expense limit that plays a role in determining whether a health plan is an HSA eligible HDHP will increase.
The following tables indicate the HSA regular contribution limits for 2021 and 2020: