IRS Releases 2020 HSA and HDHP Limits

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On May 28, 2019, the Internal Revenue Service (IRS) issued Revenue Procedure 2019-25 adjusting the health savings accounts (HSAs) and high-deductible health plans (HDHPs) contribution limitations for calendar year 2020.

These limits are indexed for inflation and released annually by June 1st for the following year, as established under the Tax Relief and Health Care Act of 2006.

2020 Annual HSA Contribution Limits:

  • Self-only HDHP coverage: $3,550* (up $50 from 2019)
  • Family HDHP coverage: $7,100* (up $100 from 2019)

*However, an individual who has reached the age of 55 by the end of the calendar year may contribute an additional $1,000 per year.

2020 Annual HDHP Minimum Deductibles:

  • Self-only coverage: $1,400 (up $50 from 2019)
  • Family coverage: $2,800 (up $100 from 2019)

2020 HDHP Out-of-Pocket Limits (includes deductibles, co-payments and other amounts, but not premiums):

  • Self-only coverage: $6,900 (up $150 from 2019)
  • Family coverage: $13,800 (up $300 from 2019)

For a copy of Revenue Procedure 2019-25, click on the link provided below.

ADP Compliance Resources

ADP maintains a staff of dedicated professionals who carefully monitor federal and state legislative and regulatory measures affecting employment-related human resource, payroll, tax and benefits administration, and help ensure that ADP systems are updated as relevant laws evolve. For the latest on how federal and state tax law changes may impact your business, visit the ADP Eye on Washington Web page located at www.adp.com/regulatorynews.

ADP is committed to assisting businesses with increased compliance requirements resulting from rapidly evolving legislation. Our goal is to help minimize your administrative burden across the entire spectrum of employment-related payroll, tax, HR and benefits, so that you can focus on running your business. This information is provided as a courtesy to assist in your understanding of the impact of certain regulatory requirements and should not be construed as tax or legal advice. Such information is by nature subject to revision and may not be the most current information available. ADP encourages readers to consult with appropriate legal and/or tax advisors. Please be advised that calls to and from ADP may be monitored or recorded.

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Updated on May 30, 2019

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