IRS Announces 2020 HSA Amounts

Published on: 13:10PM May 28, 2019

The IRS just released the 2020 Health Savings Account (HSA) limits, etc. as adjusted for inflation.

Annual contribution limits:

  • An individual with self-only coverage - $3,550 (up from $3,500 in 2019),
  • An individual with family coverage - $7,100 (up from $7,000 in 2019).

High Deductible Health Plan (HDHP) minimum deductibles:

  • An individual with self-only coverage - $1,400 (up from $1,350 in 2019),
  • An individual with family coverage - $2,800 (up from $2,700 in 2019).

Maximum Out-of-Pocket Limits:

  • An individual with self-only coverage - $6,900 (up from $6,750 in 2019),
  • An individual with family coverage - $13,800 (up from $13,500 in 2019).

HSA plans are one of the most tax-effective ways to reduce health insurance costs.  The amounts contributed are allowed as a full deduction on your tax return and as long as any amounts taking out of the account are used for medical costs, they are completely tax-free including any earnings.

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