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 | ||
|---|---|---|
| 2019 | 2020 | |
| HSA Limit (Employer & Employee Contribution Combined) | Individual: $3,500 Family: $7,000 | Individual: $3,550 Family: $7,100 |
| High Deductible Health Plan Minimum Deductibles | Individual: $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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