IRS Releases 2020 HSA Contribution Limits

The IRS recently released the inflation adjusted amounts for 2020 relevant to Health Savings Accounts (HSAs) and high deductible health plans (HDHPs) via Revenue Procedure 2019-25.  The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have increased for 2020.

The table below summarizes these adjustments and other applicable limits.

As shown above, the ACA imposes out-of-pocket or cost-sharing limits that are slightly higher than the IRS's out-of-pocket limits on HSA-qualified HDHPs. This said, in order for a health plan to qualify as an HDHP, the plan must comply with the lower out-of-pocket maximum limit for HDHPs.

As always, please do not hesitate to reach out with any questions or concerns.