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IRS Announces 2020 HSA Contribution Limits
The limits will increase $50 for an individual with self-only coverage and $100 for an individual with family coverage in 2020.
The IRS issued Revenue Procedure 2019-25, which provides the 2019 inflation-adjusted amounts for health savings accounts (HSAs) as determined under Section 223 of the Internal Revenue Code (IRC).
For calendar year 2020, the annual limitation on deductions under IRC Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,550. For calendar year 2020, the annual limitation on deductions under Section 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,100. These are increases of $50 and $100, respectively, from 2019 contribution limits.
For calendar year 2020, a high deductible health plan (HDHP) is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
Text of Revenue Procedure 2019-25 may be found in Internal Revenue Bulletin: 2019-22.You Might Also Like:
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