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IRS announces 2020 inflation adjustments for HSAs

RFP
Tax Hot Topics newsletterThe The IRS issued Rev. Proc. 2019-25 to announce inflation-adjusted amounts for contributions, plan deductibles, and out-of-pocket expenses for health savings accounts (HSAs). The calendar year 2020 limit on HSA contributions is $3,550 for an individual with self-only coverage and $7,100 for an individual with family coverage. In order to qualify for an HSA, an individual’s coverage in a group health plan must be under a high-deductible health plan (HDHP). The guidance provides that in calendar year 2020, HDHPs must have 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) cannot exceed $6,900 for self-only coverage or $13,800 for family coverage.

Contacts:
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107

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