New Limits for High Deductible Health Plans
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.
2020 HSA Annual Deduction Limits
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
MyHRConcierge helps small to medium businesses stay compliant with rules and regulations related to human resources, benefits, and retirement.
If you have questions about the new HSA rules or have other HR questions, please contact Chris Cooley at (855) 538-6947 ext 108.