This post is a little ahead of schedule but it is worth noting that the Internal Revenue Service has issued the inflation-adjusted limits for health savings accounts for next year, raising them by approximately 1.4 percent.
In Rev. Proc. 2019-25, the IRS said the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,550 in calendar year 2020. For that same year, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,100. (The limit for individuals with self-only coverage for 2019 is $3,500, and $7,000 for an individual with family coverage.)
A “high deductible health plan” is defined for 2020 as a health plan with an annual deductible of not less than $1,400 for self-only coverage or $2,800 for family coverage, and where the annual out-of-pocket expenses (such as deductibles, co-payments and other amounts, but not premiums) don’t exceed $6,900 for self-only coverage or $13,800 for family coverage.
An HSA plan is a great way to set aside pre-tax dollars for past, present and future health care costs, and we highly recommend that you discuss your options with a qualified CPA and/or medical insurance broker!