The Internal Revenue Service has issued inflation adjusted health savings account (“HSA”) parameters for 2020. A high deductible health plan must have a deductible of at least $1,400 (up from $1,350 in 2019) and total out of pocket expenses (deductibles, co-payments, and other amounts, but not premiums) of not more than $6,900 (up from $6,750 in 2019) for single coverage or a deductible of at least $2,800 (up from $2,700 in 2019) and total out of pocket expenses of not more than $13,800 (up from $13,500 in 2019) for family coverage. The maximum annual HSA contribution that may be deducted or excluded from income will be $3,550 for self only HSAs (up from $3,500 in 2019) or $7,100 (up from $7,000 in 2019) for family coverage. Individuals aged 55 or older may contribute (and deduct or exclude from income) an additional $1,000 to a single or family HSA.
Commentary
