by WEX Health
Earlier today, the Internal Revenue Service issued a bulletin that included an update that all health savings account (HSA) holders and administrators will find relevant: The annual contribution limits will increase slightly in calendar year 2020, reflecting an adjustment for inflation.
For 2020, the annual limit on HSA contributions is $3,550 for individuals with self-only coverage under a high-deductible health plan (HDHP), a $50 increase from 2019. For family coverage, the contribution limit is $7,100, a $100 increase from 2019.
Increased deductible amounts and expense limits were also announced for HDHPs: In 2020, an HDHP will be defined 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 (deductibles, co-payments and other amounts, but not premiums) must not exceed $6,900 for self-only coverage or $13,800 for family coverage.