2020 Health Savings Account Limits

A Health Savings Account (HSA) is a tax-benefit program for people covered by high-deductible insurance plans (HDHPs) that are used for qualified expenses above and above the coverage limits and/or exclusions for HDHPs. Contributions are made to the individual's or the employer's account and are limited to a maximum annual sum.

The IRS issued (Rev. Proc. 2019-25) the calendar-year 2020 inflation-adjusted figures for the annual HSA contribution limits.

It includes the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.

For 2019,

• Maximum HSA Contribution Self-only: $3,500, Family: $7,000.

• Minimum HDHP Deductible Self-only: $1,350, Family: $2,700.

• HDHP Out-of-Pocket Maximum Self-only: $6,750, Family: $13,500.

For 2020,

• Maximum HSA Contribution Self-only: $3,550, Family: $7,100.

• Minimum HDHP Deductible Self-only: $1,400, Family: $2,800.

• HDHP Out-of-Pocket Maximum Self-only: $6,900, Family: $13,800.

***Source from (Rev. Proc. 2019-25): https://www.irs.gov/irb/2019-22_IRB#REV-PROC-2019-25

If you need advice or services on any aspect of bookkeeping, accounting and tax, our specialists are ready to help. Get in touch with us for free quote.

#2020HSA #HealthSavingAccount #irvinebookkeeping #bookkeeping

You may also like:

Tax return due day is coming. What should you do?

Double-Entry Accounting, Debit, and Credit - Defined and Explained