2020 HSA Contribution Limits Issued

The Service, in Rev. Proc 2019-25, announced the annual inflation-adjusted limits on deductions for contributions to a health savings account (HSA) allowed for taxpayers with family coverage under a high-deductible health plan (HDHP) for calendar year 2020.

The key limits are set forth in Rev. Proc 2019-25 as follows:

Annual contribution limitation. For calendar year 2020, the annual limitation on deductions under § 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 § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,100.

High deductible health plan. For calendar year 2020, a “high deductible health plan” is defined under § 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.

Rev. Proc. 2019-25

See also Sally P. Schreiber, 2020 Limits on HSA Contributions Are Issued, Journal of Accountancy (May 28, 2019).

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..

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