December 10, 2019

December 10, 2019

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December 09, 2019

Subscribe to Latest Legal News and Analysis

IRS Announces 2020 Limits For Health Savings Accounts And High-Deductible Health Plans

The Internal Revenue Service (IRS) recently announced cost-of-living adjustments to the applicable dollar limits for health savings accounts and high-deductible health plans for 2020. Nearly all of the dollar limits currently in effect for 2019 will change for 2020.

In Depth


Recently, the Internal Revenue Service (IRS) announced (see Revenue Procedure 2019-25) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2020. Each of the dollar limits currently in effect for 2019 will change for 2020, with the exception of the HSA catch-up contribution for individuals age 55 or older, which is not subject to cost-of-living adjustments.

The table below compares the applicable dollar limits for HSAs and HDHPs for 2019 and 2020.

Plan sponsors should update payroll and plan administration systems for the 2020 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, like open enrollment and communication materials, plan documents, and summary plan descriptions.

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About this Author

Jacob Mattinson Employee Benefits Attorney
Associate

Jacob M. Mattinson focuses his practice on employee benefits and matters related to 401(k), 403(b), pension, executive compensation, health care reform, and cafeteria and welfare plans.

Jacob assists clients in drafting employee benefit plan documents and amendments. He represents clients in matters before the Internal Revenue Service (IRS), US Department of Labor (DOL) and Pension Benefit Guaranty Corporation with respect to plan qualification issues. He also counsels privately and publicly held corporations and tax-exempt entities on a variety of benefits and Employee Retirement...

312-984-3263
Megan Mardy Attorney McDermott Will Emery
Associate

Megan Mardy is an associate in the law firm of McDermott Will & Emery LLP and is based in the Firm's Chicago office.  Megan focuses her practice primarily on designing, amending and administering 401(k) plans, profit sharing plans, pension plans, cafeteria plans and welfare benefit plans.  She also has experience counseling clients regarding compliance with HIPAA, the Affordable Care Act, and other federal laws affecting group health plans.  Megan has counseled privately and publicly-held corporations and tax-exempt entities regarding fiduciary issues under ERISA, employee benefits issues involved in corporate transactions, and executive compensation matters.  She also has experience counseling plan fiduciaries with respect to the claims and appeals procedures under ERISA.

312-984-7623