Health savings account (HSA) contribution limits for 2020 are going up. The Internal Revenue Service (IRS) recently confirmed a $50 increase for self-only coverage and a $100 increase for family coverage due to annual inflation adjustments.
For 2020, the annual limit on HSA contributions will be $3,550 for individuals with self-only coverage and $7,100 for family coverage. Catch-up contributions for those over the age of 55 will remain the same at $1,000.
Along with solidifying the HSA contribution limits, the IRS also confirmed minimum deductible and maximum out-of-pocket expense adjustments for high-deductible health plans paired with HSA plans via Revenue Procedure 2019-25. For these plans, the minimum deductible for 2020 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) cannot exceed $6,900 for self-only coverage or $13,800 for family coverage.
