The IRS announced the 2020 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs [Rev. Proc. 2019-25, 2019-22 IRB 1261].
The annual cost-of-living adjustments are released by June 1 for the following year.
2020 annual contribution levels for HSAs:
2020 amounts for out-of-pocket spending on HSA-compatible HDHPs:
2020 minimum deductible amounts for HSA-compatible HDHPs:
A fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!