The IRS released Revenue Procedure 2019-25 announcing the cost-of-living adjustments (COLAs) applicable to health savings accounts (HSAs) for the calendar year 2020. The changes include an increase in the contribution limits applicable to eligible individuals who have self only or family high-deductible health plan (HDHP) coverage. The annual contribution for an individual with self-only coverage under a high deductible health plan was raised from $3,500 to $3,550 or $4,550 for those eligible for catch-up contributions. For an individual with family coverage under a high deductible health plan, the amount was raised from $7,000 to $7,100 or $8,100 for those eligible for catch-up contributions. The minimum annual deductible for self-only coverage increased from $1,350 to $1,400 and for family coverage increased from $2,700 to $2,800.The IRS also updated the annual out-of-pocket maximum from $6,750 to $6,900 for self-only coverage and from $13,500 to $13,800 for family coverage.
