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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