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.
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.
For further information about applying the new HSA and HDHP plan limits for 2020, please contact your regular McDermott lawyer or one of the authors above.