The IRS has released the 2020 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223.
The IRS has released the 2020 inflation-adjusted amounts for health savings accounts (HSAs) under Code Sec. 223. For calendar year 2020, the annual limitation on deductions under Code Sec. 223(b)(2) for an individual with self-only coverage under a high-deductible plan is $3,550 ($7,100 for an individual with family coverage).
For 2020, a “high-deductible health plan” is defined in Code Sec. 223(c)(2)(A) 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.
HSA catch-up contributions for age 55 or older are not subject to inflation adjustments and remain at $1,000.
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