By Payroll and Entitlements Editorial Staff
The IRS has released the 2021 inflation-adjusted amounts for health savings accounts under Code Sec. 223. For calendar year 2021, the annual limitation on deductions under Code Sec. 223(b)(2) for an individual with self-only coverage under a high-deductible plan is $3,600 ($7,200 for an individual with family coverage). A "high-deductible health plan" is defined in Code Sec. 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 annual out-of-pocket expense limits (deductibles, copayments and other amounts, but not premiums) that do not exceed $7,000 for self-only coverage or $14,000 for family coverage. (Rev. Proc. 2020-32, IRB 2020-24, June 15, 2020).
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