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June 6, 2019

HSA Inflationary Adjustments for 2020

The IRS released the 2020 inflationary adjustments relating to health savings accounts (Rev. Proc. 2019-25, as contained in Internal Revenue Bulletin: 2019-22).  

For 2020, the individual and family contribution limits, out-of-pocket limits, and the annual high deductible health plan (HDHP) deductible limits will increase.

 

Individual/Self Only

Family

2020

2019

2020

2019

Contribution Limit

$3,550

$3,500

$7,100

$7,000

HDHP Annual Deductible

$1,400

$1,350

$2,800

$2,700

HDHP Annual Out-of-Pocket Limit*

$6,900

$6,750

$13,800

$13,500

 

*Note: The out-of-pocket (OOP) limits applicable to high deductible health plans used in conjunction with HSAs differ slightly from the ACA-imposed OOP limits.  In 2020, the OOP limits will increase to $8,150 for self-only, $16,300 for other than self-only coverage.  For 2019, the OOP is $7,900 for self-only; $15,800 for other than self-only coverage.  Also important to remember that under the ACA, for a family plan, no individual can be subject to an OOP greater than the individual OOP limit.

General reminders about HSA limits:

  • The $1,000 catch up contribution available to accountholders aged 55 and over is not tied to a cost of living adjustment and thus, remains at $1,000.
  • With regard to the family deductible, any embedded deductible can be no lower than the minimum family statutory deductible limit.

 

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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