The IRS has announced the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code.
Annual Contribution Limitation
For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,550 (up from $3,500 for 2019). The annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,100 (up from $7,000 for 2019).
High Deductible Health Plan Amounts
For calendar year 2020, a “high deductible health plan” is defined 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 annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,900 for self-only coverage or $13,800for family coverage.
Click here to read the IRS announcement.
To access your HR library, please visit www.HR360.com/login.
Read more