On May 28, 2019, the IRS released Revenue Procedure 2019-25 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2020. Here’s a breakdown of these increases.
Annual Contribution Limits for 2020
For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,550, while annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,100.
High Deductible Health Plan Limits for 2020
For calendar year 2020, a “high deductible health plan” is as 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 do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
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