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HSA/HDHP Limits Increase for 2021

Thursday, October 29, 2020

In May 2020, the IRS released Revenue Procedure 2020-32 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2021. The IRS is required to publish these limits by June 1 of each year. 

These limits include:

  • The maximum HSA contribution limit;
  • The minimum deductible amount for HDHPs; and
  • The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,600 to their HSAs for 2021, up from $3,550 for 2020. Eligible individuals with family HDHP coverage will be able to contribute $7,200 to their HSAs for 2021, up from $7,100 for 2020. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.  

The minimum deductible amount for HDHPs remains the same for the 2021 plan years ($1,400 for self-only coverage and $2,800 for family coverage). However, the HDHP maximum out-of-pocket expense limit increases to $7,000 for self-only coverage and $14,000 for family coverage. 


  • Each year, the IRS announces inflation-adjusted limits for HSAs and HDHPs. 
  • By law, the IRS is required to announce these limits by June 1 of each year.
  • The adjusted contribution limits for HSAs take effect as of January 1, 2021.  
  • The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after January 1, 2021. 

Important Dates

  • January 1, 2021: The new contribution limits for HSAs become effective.
  • 2021 Plan Years: The HDHP cost-sharing limits for 2021 apply for plan years beginning on or after January 1, 2021.

Action Steps

Employers that sponsor HDHPs should review their plan’s cost-sharing limits (minimum deductibles and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2021. Employers who allow employees to make pre-tax HSA contributions should update their plan communications for the increased contribution limits. 


 The following chart shows the HSA and HDHP limits for 2021 as compared to 2020. It also includes the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older, which is not adjusted for inflation and stays the same from year to year.


Type of Limit




HSA Contribution Limit




Up $50




Up $100

HSA Catch-up Contributions (not subject to adjustment for inflation)

Age 55 or older



No change

HDHP Minimum Deductible




No change




No change

HDHP Maximum Out-of-pocket Expense Limit (deductibles, copayments and other amounts, but not premiums)




Up $100




Up $200

This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2020 Zywave, Inc. All rights reserved.

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

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