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Compliance FYI: 2020 HSA Information

Employee Benefits

On May 28, 2019 the IRS issued the limits for 2020 on health savings accounts (HSAs) and the associated high deductible health plans (HDHPs) in Revenue Procedure 2019-25.

With the ACA limits, plans must apply the annual individual Out-of-Pocket (OOP) maximum for each individual in a family plan.  Employers offering HSAs, however, must make sure they satisfy the lower OOP maximums and not these higher ACA limits.

Health Savings Accounts
Minimum HDHP Deductible$1,400/single$2,800/family
Maximum Contributions$3,550/single$7,100/family
Out-of-Pocket Maximum$6,900/single$13,800/family

It is important to note that all limitations have increased from 2019. 

Reminder: The Affordable Care Act (ACA) out of pocket limits differ from the Internal Revenue Service (IRS) out-of-pocket limits for HSA qualified HDHPs.

Affordable Care Act – Out of Pocket Maximums

Out-of-Pocket Maximum 2019$8,150/single$16,300/family

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