The IRS announced the annual limits on deductions for contributions to Health Savings Accounts (HSA) allowed to tax payers in High Deductible Health Plans (HDHP) for calendar year 2020.
The tax payer must be a participant in a HDHP to receive deductions for contributions to a HSA. HDHPs are health plans that meet certain requirements related to their annual deductible and out-of-pocket expenses.
For 2020, the annual limit on deductions are as follows:
- Individual with self-only coverage under a HDHP is $3,550 ($3,500 in 2019)
- Individual with family coverage under a HDHP is $7,100 ($7,000 in 2019)
For more information, see IRS Rev. Proc. 2019-25
If you have questions or need, please contact Chris Cooley at (855) 538-6947 ext 108.