Health Savings Accounts (HSAs) are a type of medical savings account that allows eligible individuals to make deductible contributions and withdraw tax-free disbursements for the payment of eligible medical expenses. Each year the IRS evaluates the limitation amounts on HSA deductions based for inflation.For 2020, the limit for an individual with self-coverage under a High Deductible Health Plan (HDHP) is $3,550 (up from $3,500 from 2019.) The limit for family coverage is $7,100 (up from $7,000 for 2019.)
An HDHP is defined as a health plan with an annual deductible not less than $1,400 (up from $1,350 in 2019) for self-coverage and $2,800 (up from $2,700 from 2019) for family coverage. Annual out-of-pocket expenses (deductibles, copays, and other amounts, but not premiums) can not exceed $6,900 (up from $6,750 for 2019) for self-coverage and $13,800 (up from $13,500 for 2019) for family coverages.
Is an HDHP right for you? Contact us today to discuss which health care option is best for your unique needs.