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IRS Releases 2020 Inflation Adjusted Amounts for HSAs


The IRS has released
Revenue Procedure 2019-25 detailing the HSA contribution limit increases for 2020.

·         The 2020 HSA contribution limit for individual coverage will increase by $50 to $3,550.

·         The 2020 HSA contribution limit for family coverage (employee plus at least one dependent) will increase by $100 to $7,100.

The catch-up contribution limit of $1,000 is fixed by law and does not adjust for inflation.

The Revenue Procedure also includes the 2020 calendar year minimum deductible and out-of-pocket maximums allowed for a plan to qualify as a high deductible health plan (HDHP)—the required coverage for an individual to be eligible to make or receive HSA contributions.  

·         The 2020 minimum deductible for individual coverage will increase by $50 to $1,400.

·         The 2020 minimum deductible for family coverage will increase by $100 to $2,800.

·         The 2020 maximum out-of-pocket limit for individual coverage will increase by $150 to $6,900.

·         The 2020 maximum out-of-pocket limit for family coverage will increase by $300 to $13,800.

 

2019

2020

HDHP Minimum Deductible

 

 

Single

$1,350

$1,400

Family

$2,700

$2,800

 

 

 

HDHP Maximum Out-of-Pocket

 

 

Single

$6,750

$6,900

Family

$13,500

$13,800

HSA 

 

 

Contribution Limit

 

 

Single

$3,500

$3,550

Family

$7,000

$7,100

HSA 

 

 

55 + Contribution

 

 

Single

$1,000

$1,000

Family

$1,000

$1,000

 

For more details on everything HSA-related, see our recent ABD Office Hours Webinar: Go All the Way With HSA.

 

Disclaimer: The intent of this analysis is to provide the recipient with general information regarding the status of, and/or potential concerns related to, the recipient’s current employee benefits issues. This analysis does not necessarily fully address the recipient’s specific issue, and it should not be construed as, nor is it intended to provide, legal advice. Furthermore, this message does not establish an attorney-client relationship.  Questions regarding specific issues should be addressed to the person(s) who provide legal advice to the recipient regarding employee benefits issues (e.g., the recipient’s general counsel or an attorney hired by the recipient who specializes in employee benefits law).

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