HSA Limits for 2020

Each year the IRS announces inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs). The limits affected include:

• The maximum HSA contribution limit
• The minimum deductible amount for HDHPs
• The maximum out-of-pocket expense limit for HDHPs.

Each limit varies based upon whether an individual as self or family coverage. In 2020, the IRS limits for HSA contributions will increase. Eligible individuals with self-only HDHP coverage will be able to contribute up to $3550, up from $3,500 the previous year. Eligible individuals with family HDHP coverage will be able to contribute up to $7100 for 2020, up from $7000 in 2019. These adjusted HDHP limits take effect for the plan year beginning on or after Jan. 1, 2020. All of the changes for HSA and HDHP limits in 2020 can be seen in the chart below:

Next Steps:

Employers who sponsor these plans may need to make plan design changes for plan years beginning in 2020. Employers that allow pre-tax HSA contributions from employees should confirm that their benefit election forms have been updates for the 2020 HSA contribution limits.