Article

IRS announces 2020 HSA and HDHP limits

June 3, 2019
| United States
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By Cindy Brockhausen and Ben Lupin

In Revenue Procedure 2019-25, the IRS announced the 2020 inflation-adjusted dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs). The limits include the maximum HSA contribution amount along with the minimum deductible and maximum out-of-pocket expenses for HDHPs. These amounts are updated annually to reflect cost-of-living adjustments.

For employers sponsoring HSAs and HDHPs, the new limits will affect benefit plan administration and communication materials for 2020. They may also influence HDHP designs and HSA contribution strategies for 2020.

2019 versus 2020 HSA and HDHP limits

Self-only coverage 2019 2020 Change
Maximum annual HSA contribution $3,500 $3,550 +$50
Minimum annual deductible for HDHP $1,350 $1,400 +$50
Maximum annual out-of-pocket expense limit for HDHP $6,750 $6,900 +$150
Family coverage 2019 2020 Change
Maximum annual HSA contribution $7,000 $7,100 +$100
Minimum annual deductible for HDHP $2,700 $2,800 +$100
Maximum annual out-of-pocket expense limit for HDHP $13,500 $13,800 +$300

Note: The 2020 HSA catch-up contribution limit for participants who are 55 or older on December 31, 2020, remains $1,000 (this amount is fixed by statute).