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2020 HSA and HDHP Inflation Adjustments

Posted on May 28th, 2019

Each year, the Internal Revenue Service (IRS) makes inflation adjustments to Health Savings Accounts (HSAs) and qualified high deductible health plans (HDHPs). On May 24, 2019, the IRS released Rev. Proc. 2019-25 which included details on the inflation adjustments for 2020.

The table below sumarizes the the HDHP requirements for 2020.

It should be noted that the maximum out-of-pocket limitations for HDHPs are lower than the maximum out-of-pocket limitations premitted under the Affordable Care Act (ACA). In addition, any employer who offers a Health Reimbursement Arrangement (HRA) that provides post-deductible reimbursements will need to ensure the HRA does not provide reimbursements until the minimum deductible ($1,400 for single coverage and $2,800 for family coverage) has been satisfied, in order to preserve HSA eligibility for employees.

The HSA contribution maximums have been adjusted for 2020 as well. The new maximums are summarized in the table below:

The single and family contribution maximums have increased slightly, but the catch-up contribution amount (for individuals age 55 or older) remains unchanged.

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