New Annual Contribution Limitation
The IRS released Revenue Procedure 2019-25 with new inflation adjusted Health Savings Account maximums for individual and family coverage high deductible plans for calendar year 2020. As a result, individuals with self-only coverage will have a maximum of $3,550 in 2020 (raised from $3,500 in 2019) to contribute to a Health Savings Account. Individuals with family coverage will have a maximum of $7,100 in 2020 (raised from $7,000 in 2019).
High Deductible Health Plan
The IRS defines a high deductible health plan is a health plan with an annual deductible with a minimum of $1,400 for self-only coverage or $2,800 for family coverage within the calendar year of 2020. Out of pocket expenses (such as deductibles, co-payments, and other non-premium amounts) have maximums of $6,900 for self-only coverage or $13,800 for family coverage.