Health Savings Account

IRS Announces 2020 Adjustments for Qualified HDHPs and HSA Contributions

The Internal Revenue Service (IRS)  has released the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs). Contribution limits, minimum deductibles, and the maximum for out-of-pocket expenses all go up next calendar year.

HSA 2019 2020
Individual contribution limit $3,500 $3,550
Family contribution limit $7,000 $7,100

 

In 2020, the HSA contribution limit for an individual will increase by $50 to $3,550 and for a family by $100 to $7,100. 

In addition, the 2020 High Deductible Health Plan deductible amounts and out-of-pocket expense limits were also announced. To be eligible to contribute to an HSA in 2020, one must be enrolled in a high deductible health plan that meets the following requirements:

HDHP (individual) 2019 2020
Minimum annual deductible $1,350 $1,400
Maximum annual out-of-pocket $6,750 $6,900

 

HDHP (family) 2019 2020
Minimum annual deductible $2,700 $2,800
Maximum annual out-of-pocket $13,500 $13,800