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 |
