Those of you with a high-deductible health plan (HDHP) that’s Health Savings Account (HSA)-eligible, pay attention to 2020. You’ll see some increased contribution limits.
Every year, the IRS adjusts contribution limits for HSAs based on inflation. For 2020, those limits will be:
· $3550 for individual coverage under an HDHP ($50 increase from 2019)
· $7100 for family coverage ($100 increase)
Please note, while the amount employees can contribute is increasing in 2020, the deductible required for a plan to qualify for an HSA is also increasing:
· For an individual, deductibles must fall in a range between $1400 ($50 increase from 2019) and $6900 ($150 increase from 2019).
· For families, the range is $2800-$13,800 (increasing $100 and $300, respectively).
The 2020 limit on HDHP out-of-pocket expenses (including items such as deductibles, copayments, and coinsurance, but not premiums) is $6,900 for self-only HDHP coverage (up from $6,750 in 2019), and $13,800 for family HDHP coverage (up from $13,500 in 2019).
Be sure to check these limits and deductions yearly, as it is likely the IRS may change them in 2021 and beyond.