On May 28, 2019, the IRS announced the inflation-adjusted limits for HSAs for 2020. Nearly all of the dollar limits currently in effect for 2019 will change for 2020.
What are the adjustments?
- The HSA contribution limit for self-only coverage will increase by $50 to $3,550.
- The HSA contribution limit for family coverage will increase by $100 to $7,100.
- There are no changes to the $1,000 catch-up contribution limit for individuals who are age 55 or older.
- The cost-sharing limits for HSA-compatible health plans will also increase for 2020 plan years.
Plan sponsors should update payroll and plan administration systems for the 2020 adjustments and should incorporate the new limits in relevant participant communications such as open enrollment and communication materials, summary plan descriptions, and plan documents.
Contact World Insurance Association, Inc. to learn more.