2020 HSA Contribution Limits Announced
On May 28, 2019, the IRS issued updated Health Savings Account (HSA) contribution limits for 2020. These limits have been adjusted for inflation.
Health Savings Account Contribution Limits for 2020:
- $3,550 for individuals in a high deductible health plan (HDHP) with self-only coverage. This is an increase of $50 from $3,500 in 2019.
- $7,100 for individuals covered under a family HDHP. This is an increase of $100 from $7,000 in 2019.
In order to participate in an HSA, you must be enrolled in a high deductible health plan. The IRS also adjusts minimum deductibles and maximum out-of-pocket expenses for inflation, as seen below.
|2020 HDHP Minimum Deductible||2020 HDHP Maximum Out-of-Pocket Expenses|
|Individual with self-only coverage|
|Individual with family coverage|
HSAs can be an effective way to reduce the cost of healthcare. HSA withdrawals to pay for qualified medical costs are not taxed. In addition, HSAs grow tax-deferred and the money rolls over from year-to-year.
For more information, please reach out to your ABBB advisor.