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2020 Health Savings Account (HSA) Limits Announced

June 18, 2019

The Internal Revenue Service has announced the 2020 dollar limitations for Health Savings Accounts as well as underlying qualifying High Deductible Health Plans. The maximum HSA contribution, out of pocket maximum limits, and the minimum deductible for high deductible health plans saw increases at both the family and individual levels.

High Deductible Health Plan Policy Limits

  2019 2020
Minimum Deductible Individual   $1,350 $1,400
  Family $2,700 $2,800
       
Maximum Out of
Pocket Limit
Individual  $6,750 $6,900
  Family $13,500 $13,800

 

Health Savings Account Limits

    2019 2020
Maximum HSA Contribution Individual   $3,500   $3,550
  Family $7,000 $7,100
       
Over Age 55 Catch-Up Contribution   $1,000  $1,000

 

High Deductible Health Plan Policy Limits

Any amount can be contributed to an HSA up to the maximum annual contribution, regardless of the actual deductible of the underlying HDHP plan. The HSA contribution rules assume that you will be enrolled on a high deductible health plan for 12 consecutive months.


Embedded Deductibles on an HSA-Qualified HDHP

Many qualified high deductible health plans have an aggregate family deductible so that if an employee covers any dependents on the plan, the family deductible applies and the individual deductible is not taken into consideration. However, there are some plans that have an embedded individual deductible such that if one member of the family meets the embedded individual deductible, then the plan coinsurance would start to pay once that individual deductible is met.  In order for such a plan to be a qualified HDHP the embedded individual deductible must be at least the minimum family deductible outlined above. As an example, these types of plans would need to have an embedded individual deductible of $2,800 to remain HSA qualified in 2020.

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