2020 HSA Limits, Minimum Deductibles and Out of Pocket Limits

The Internal Revenue Service (IRS) announced on Tuesday, May 28, new HSA contribution limits, out-of-pocket limits and minimum annual deductibles for next year. Health Savings Account (HSA) owners will see a slight bump across the board for 2020 HSA limits.

2020 HSA Limits Go Up

Next year, HSA owners will be able to make more tax-free contributions to their accounts. The 2020 HSA limits have increased to $3,550 for those with self-only coverage and $7,100 for those with family coverage (See the chart below).

The amount for catch up contributions (for those age 55 and older) stays the same at $1,000 over the annual limit; eligible account owners may contribute up to $4,550 for self-only and $8,100 for family coverage next year.

Minimum Deductibles and Out-of-Pocket Limits

The IRS also increased the minimum annual HDHP deductible and out-of-pocket expense limits for both self-only and family coverage.

2020 HSA Limits, HDHP Minimum Deductible and Out-of-Pocket Maximums

  2020 2019
Annual Contribution Limits Self-Only: $3,550 (+ $50)
Family: $7,100 (+ $100)
Self-Only: $3,500
Family: $7,000
Catch Up Contributions Self-Only: $1,000
(over annual limit)
Family: $1,000
(over annual limit)
Self-Only: $1,000
Family: $1,000
HDHP Minimum Deductible Self-Only: $1,400 (+ $50)
Family: $2,800 (+ $100)
Self-only: $1,350
Family: $2,700
HDHP Out-of-Pocket Maximum* Self-only: $6,900 (+ $150)
Family: $13,800 (+ $300)
Self-only: $6,750
Family: $13,500

*Out-of-pocket maximums include co-pays, deductibles, and other amounts, but insurance premiums do not apply.

Important HSA Notes

  • HSAs are owned by the employee, not the company (like with an FSA), for the life of the account.
  • HSA owners make tax-free contributions, earn tax-free interest and investment income, and use the money tax-free for qualified healthcare expenses. View a list of qualified healthcare expenses.
  • An HSA may be used for the owner or a dependent.
  • After age 65, HSA owners may use their account funds for any expense without penalty; however, if used for a non-qualified expense, the withdrawal is subject to taxes.
  • You can only make contributions to an HSA when you’re enrolled in a qualified HDHP; you can use the money in the account even if you do not have HDHP coverage.