IRS Releases 2020 HSA Contribution Limits
Published on May 28th, 2019
Each year, the IRS updates 1) the minimum annual deductible amount a health plan can have to qualify for a complementary, tax-advantaged health savings account (HSA), 2) the maximum out-of-pocket cost responsibility for the participant, and 3) the HSA contribution limit that an account holder can contribute for the plan year.
On May 28, 2019, the IRS released Revenue Procedure 2019-25. It provides the 2020 inflation-adjusted amounts for HSA-qualified high deductible health plans (HDHPs).
The inflation-adjusted increases for 2020 are:
- HSA-Qualified HDHP Self Coverage: Annual deductible must be $1,400 or more in 2020 (up $50 from 2019), and annual out-of-pocket expenses cannot exceed $6,900 (up $150 from 2019)
- HSA Contribution Limit for Self Coverage: Increases to $3,550 in 2020, up $50 from 2019
- HSA-Qualified HDHP Family Coverage: Annual deductible must be $2,800 or more in 2020, up $100 from 2019, and annual out-of-pocket expenses cannot exceed $13,800 (up $300 from 2019)
- HSA Contribution Limit for Family Coverage: Increases to $7,100 in 2020, up $100 from 2019
Alegeus will continue to keep you up to date as the IRS releases the cost of living adjustments for other benefit accounts.