IRS issues 2020 HSA Inflation Adjustments

The Internal Revenue Service (IRS) has released the 2020 inflation-adjusted amounts for health savings accounts (HSAs). For calendar year 2020, the annual limitation on deductions for an individual with self-only coverage under a high-deductible plan is $3,550 ($7,100 for an individual with family coverage). A “high-deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage and annual out-of-pocket expense limits (deductibles, copayments and other amounts, but not premiums) that do not exceed $6,900 for self-only coverage or $13,800 for family coverage.