Health Savings Accounts: 2020 Cost-of-Living Adjustments | Wolters Kluwer
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  • Health Savings Accounts: 2020 Cost-of-Living Adjustments

    Mike Schiller Onward

    by Mike Schiller, Consultant, Tax Advantaged Accounts, Wolters Kluwer

    Published May 29, 2019




    On Tuesday, May 28, 2019 the Internal Revenue Service (IRS) released Revenue Procedure 2019-25 announcing the cost-of-living adjustments (COLAs) applicable to Health Savings Accounts (HSAs) for 2020.

    After application of the COLA rules, changes for 2020 include an increase in the contribution limits applicable to eligible individuals who have self only or family high-deductible health plan (HDHP) coverage. Additionally, the minimum deductible amount and maximum out-of-pocket expense limit that play a role in determining whether a health plan is an HSA eligible HDHP will increase for 2020.

    The following tables indicate the HSA regular contribution limits for 2020 and 2019:

    HSA Regular Contribution Limits for 2020
    HDHP Coverage
    Standard Limit
    Catch-Up Contribution
    Contribution Limit if Age 55 or Older
    Self-Only
    $3,550
    $1,000
    $4,550
    Family
    $7,100
    $8,100

    HSA Regular Contribution Limits for 2019
    HDHP Coverage
    Standard Limit
    Catch-Up Contribution
    Contribution Limit if Age 55 or Older
    Self-Only
    $3,500
    $1,000
    $4,500
    Family
    $7,000
    $8,000

    The following tables indicate the HDHP minimum deductible and maximum out of pocket expense amounts for 2020 and 2019:

    HDHP Requirements for 2020
    HDHP Coverage
    Minimum Deductible
    Out-of-Pocket Expense Limit
    Self-Only
    $1,400
    $6,900
    Family
    $2,800
    $13,800

    HDHP Requirements for 2019
    HDHP Coverage
    Minimum Deductible
    Out-of-Pocket Expense Limit
    Self-Only
    $1,350
    $6,750
    Family
    $2,700
    $13,500

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