On May 28, 2019, the Internal Revenue Service (IRS) announced (Rev. Proc. 2019-25) the 2020 inflation-adjusted amounts for health savings accounts (HSAs) as determined under I.R.C. § 223. For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,550. For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,100.
For calendar year 2020, a high deductible health plan is a health plan with an annual deductible that 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) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
The revenue procedure is effective for calendar year 2020. If you have questions about high deductible health plans or HSAs contact us!
Share Your Thoughts