HSA

IRS Increases 2020 HSA Limits

Posted on by Megan England

On May 28, 2019, the Internal Revenue Service (IRS) announced increases to health savings account (HSA) limits for 2020. The annual limit on deductible contributions will increase by $50 to $3,550 for individuals with self-only coverage.  For all other coverage levels, the limit will increase by $100 to $7,100.

HSAs may be used only in conjunction with a high-deductible health plan (HDHP).  For 2020, the minimum deductible to qualify as a HDHP will also increase by $50 for individuals with self-only coverage and $100 for all other coverage levels to $1,400 and $2,800, respectively.  HSAs allow participants to make pre-tax contributions, reducing their taxable income for the year.  These contributions can be invested and grow tax-free.  HSAs are then used for out-of-pocket qualified medical expenses tax-free. 

Annual out-of-pocket expense limits will increase as well.  The limit for individual coverage will increase to $6,900 (from $6,750 in 2019) and family coverage limit will increase to $13,800 (from $13,500 in 2019).

For more information, please refer to the IRS Bulletin at https://www.irs.gov/pub/irs-irbs/irb19-22.pdf.

IRS Releases 2015 HSA and HDHP Amounts

Posted on by McKeogh Administrator

The Internal Revenue Service (IRS) published Revenue Procedure 2014-30 outlining the annual health savings account (HSA) contribution limitation, the minimum deductible for a high-deductible health plan (HDHP) and the maximum out-of-pocket expense limits for an HDHP in 2015. For calendar year 2015, the annual contribution limitation to an HSA is $3,350 for self-only coverage and $6,650 for family coverage. The minimum deductible under an HDHP is $1,300 for self-only coverage or $2,600 for family coverage. The maximum out-of-pocket expense limit is $6,450 for self-only coverage or $12,900 for family coverage.