The IRS has announced the 2020 HSA limits with the publishing of Revenue Procedure 2019-25, posted in its entirety below.
Deductibles must be at least $1,400 for a single, or $2,800 for family coverage while contributions are limited to $3,550 for a single and $7,100 for family coverage. These represent $50 increases in deductible and contribution limits for singles, and $100 increases for families.
Rev. Proc. 2019-25
SECTION 1. PURPOSE
This revenue procedure provides the 2020 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code.
SECTION 2. 2020 INFLATION ADJUSTED ITEMS
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.
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective for calendar year 2020.
