2020 HSA Limits Set to Moderately Rise

Health Savings Account Limits Set to Moderately Rise in 2020.

The Internal Revenue Service (IRS) just released the Health Savings Account (HSA) limits to take effect on January 1, 2020.

The changes are outlined in the table below compared to the 2019 HSA limits.

2019 vs. 2020 HSA Contribution and Out-of-Pocket Limits for Health Savings Accounts and High Deductible Health Plans  
20192020
HSA Limit
(Employer & Employee Contribution Combined)
Individual: $3,500

Family: $7,000
Individual: $3,550

Family: $7,100
High Deductible Health Plan Minimum DeductiblesIndividual: $1,350

Family: $2,700
Individual: $1,400

Family: $2,800
High Deductible Health Plan
Max Out-of-Pocket
Individual: $6,750

Family: $13,500
Individual: $6,900

Family: $13,800

Here is a link to the IRS ruling.

In addition to the deductible amount, your plan must meet other criteria in order for participants to take advantage of an HSA. For example, the HSA must be paired with a High Deductible Health Plan and the deductible must apply to all covered health services except preventative services.

Also, the out-of-pocket maximum cannot be higher than the IRS designated amount. You should always consult your HR or Benefits departments with any questions on 2020 HSA limits or other high deductible health plan details.

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