As is typical at this time of year, the IRS has announced changes to the limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) for calendar year 2020. Here’s what’s happening:
The contribution limit for HSAs will increase by $50 for individuals, from $3,500 to $3,550. The family contribution limit will rise by $100, from $7,000 to $7,100.
HSA catch-up contributions for those 55 and older remain unchanged at $1,000 per year.
There are corresponding changes to the limits for the HDHPs that work in tandem with HSAs. The HDHP minimum deductible for individuals rises by $50 as well, from $1,350 to $1,400. Likewise, the family limit rises by $100, from $2,700 to $2,800.
Finally, the out-of-pocket maximums for HDHPs will rise, by $150 for individuals (from $6,750 to $6,900) and $300 for family plans ($13,500 to $13,800).
Questions about HSAs, HDHPs or any other benefits issues? Contact Consolidated Insurance.