2020 HSA Contribution Limit
For 2020, the HSA Contribution Limit figures are $3,550 (Self-only), $7,100 (Family), $1,400 (HDHP minimum deductible, self-only) and 4 more figures below.
| Item | Self-only | Family | Age 55 and over |
|---|---|---|---|
| HDHP minimum deductible | $1,400 | $2,800 | - |
| HDHP out-of-pocket maximum | $6,900 | $13,800 | - |
| Catch-up limit | - | - | +$1,000 |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2020-01-01Source: Rev. Proc. 2019-25 (Internal Revenue Bulletin 2019-22) (IRS)Verified 2026-09-03
Catch-up limit, age 55 and overSource: Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)Verified 2026-09-03
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Self-only | $3,500 | $3,550 | +$50 (+1.4%) |
| Family | $7,000 | $7,100 | +$100 (+1.4%) |
| HDHP minimum deductible, self-only | $1,350 | $1,400 | +$50 (+3.7%) |
| HDHP minimum deductible, family | $2,700 | $2,800 | +$100 (+3.7%) |
| HDHP out-of-pocket maximum, self-only | $6,750 | $6,900 | +$150 (+2.2%) |
| HDHP out-of-pocket maximum, family | $13,500 | $13,800 | +$300 (+2.2%) |
| Catch-up limit, age 55 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
HDHP minimum deductible
HDHP out-of-pocket maximum
Catch-up limit
+$1,000$13,800
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers with self-only or family coverage under a high deductible health plan who are eligible to contribute to a Health Savings Account for calendar year 2020.
What changed this year, and why
The IRS published the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs) under section 223 of the Internal Revenue Code. The annual HSA contribution limit is $3,550 for self-only coverage and $7,100 for family coverage. A high deductible health plan (HDHP) for 2020 must have a minimum annual deductible of $1,400 for self-only coverage or $2,800 for family coverage. The maximum annual out-of-pocket expenses for an HDHP are $6,900 for self-only coverage or $13,800 for family coverage.
Common questions
- What are the 2020 HDHP minimum deductibles?
- For 2020, an HDHP must have a minimum annual deductible of $1,400 for self-only coverage or $2,800 for family coverage.
- What are the 2020 HDHP out-of-pocket maximums?
- For 2020, the maximum annual out-of-pocket expenses (including deductibles, copayments, and other amounts, but not premiums) for an HDHP are $6,900 for self-only coverage or $13,800 for family coverage.
Who can contribute, and what counts as an HDHP
To contribute to an HSA in 2020, you must be an "eligible individual." That means on the first day of a month you are covered by an HDHP, you have no other disqualifying health coverage, you are not enrolled in Medicare, and you cannot be claimed as a dependent on someone else's return. Each eligible spouse must open a separate HSA; joint accounts are not permitted. An HDHP is defined by minimum annual deductibles and maximum out-of-pocket limits. For 2020, the minimum annual deductible is $1,400 for self-only coverage and $2,800 for family coverage. The maximum out-of-pocket amount (including deductibles, copayments, and other cost-sharing, but not premiums) is $6,900 for self-only coverage and $13,800 for family coverage. An HDHP may still offer preventive care benefits with no deductible or a deductible below these minimums. Meeting these HDHP requirements, along with the other eligibility conditions, is what allows an individual to make or receive HSA contributions up to the annual limit.
To be an eligible individual and qualify for an HSA, you must meet the following requirements. • You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. • You have no other health coverage except what is permitted under Other health coverage, later. • You aren’t enrolled in Medicare. • You can’t be claimed as a dependent on someone else’s 2020 tax return.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The age 55 catch-up contribution
An account holder who is 55 or older at the end of the tax year may contribute an extra $1,000 on top of the regular annual limit. The regular 2020 limit is $3,550 for self-only coverage and $7,100 for family coverage; the $1,000 catch-up is added to whichever of those limits applies. If both spouses are 55 or older and each has their own HSA, each spouse can make a separate $1,000 catch-up contribution to their own account. The catch-up amount is not prorated for the months in which the person was HSA-eligible, but the contribution must stop once the individual enrolls in Medicare, which ends HSA eligibility.
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. For example, if you have self-only coverage, you can contribute up to $4,550 (the contribution limit for self-only coverage ($3,550) plus the additional contribution of $1,000).
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Excess contributions and the 6% excise tax
Going over the limit costs money in two directions, and it keeps costing it. The amount above the year's limit is not deductible, so the reason it went in has gone; and if an employer put it there, it lands in your gross income instead - if it never showed up in box 1 of your Form W-2, reporting it as 'Other income' on your return falls to you. The part people miss is that the 6% excise tax is not a one-off charge for the year of the mistake. It is owed for each tax year the excess is still sitting in the account, figured on Form 5329, so money left alone quietly turns into an annual bill rather than a single one. That is why the timing of the fix matters more than the size of the error. Take the excess back out, along with whatever it earned while it was there, by the due date of the return for the year it went in, extensions included, and the excise tax on the amount withdrawn does not apply; the earnings that come out with it are reported as income for the year you withdraw them.
Excess contributions. You will have excess contribu- tions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contribu- tions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Quali- fied Plans (Including IRAs) and Other Tax-Favored Ac- counts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the ac- count.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The last-month rule and its testing period
The last-month rule lets a person who is HSA-eligible on December 1 - the first day of the last month of a calendar tax year - contribute as though they had been eligible for the entire year. For 2020 that means a full-year contribution at the self-only limit of $3,550 or the family limit of $7,100, based on the HDHP coverage held on that December 1 date, even if coverage started later in the year or changed during the months before. In return for this full-year treatment the IRS requires a testing period: the person must stay an eligible individual, with HDHP coverage, from December 1, 2020 through December 31, 2021. If the person stops being eligible during that window for any reason other than death or disability, the contributions that would not have been made but for the last-month rule must be included in income in the year of the failure and are also subject to an additional tax, reported on Form 8889, Part III.
Last-month rule. Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are consid- ered an eligible individual for the entire year. You are trea- ted as having the same HDHP coverage for the entire year as you had on the first day of the last month if you didn’t otherwise have coverage. Testing period. If contributions were made to your HSA based on you being an eligible individual for the en- tire year under the last-month rule, you must remain an eli- gible individual during the testing period. For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2020, through December 31, 2021). If you fail to remain an eligible individual during the test- ing period, for reasons other than death or becoming disa- bled, you will have to include in income the total contribu- tions made to your HSA that wouldn’t have been made except for the last-month rule.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The 20% tax on non-qualified distributions
Distributions from an HSA that are not used for qualified medical expenses are included in the account holder's gross income and are also subject to an additional 20% tax. The IRS refers to this as the "additional tax" on non-qualified distributions. The tax is calculated on Form 8889, which is filed along with the taxpayer's Form 1040, 1040-SR, or 1040-NR. There are exceptions: the 20% tax does not apply if the distribution is made after the account holder becomes disabled, reaches age 65, or dies. Once one of those conditions is met, the distribution is still taxable as ordinary income, but the extra 20% penalty is waived. The underlying federal HSA contribution limits for 2020 - $3,550 for self-only coverage and $7,100 for family coverage - are not directly affected by this penalty; however, if excess contributions are withdrawn before the tax filing deadline, they may avoid the penalty on those amounts.
Additional tax. There is an additional 20% tax on the part of your distributions not used for qualified medical ex- penses. Figure the tax on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
You, your employer, and anyone else can all contribute to the same account
In the United States, any eligible individual can contribute to an HSA. For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual. This means that contributions can come from multiple sources - you, your employer, family members, or anyone else - and all of these contributions go into the same account. The total of all contributions from all sources is subject to the annual contribution limits set by the IRS, which for 2020 are $3,550 for self-only coverage and $7,100 for family coverage. Contributions must be made in cash; contributions of stock or property are not allowed.
Any eligible individual can contribute to an HSA.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The form that reports every contribution and claims the deduction
In the United States, Form 8889 is the form that reports every contribution and claims the deduction for an HSA. You must report all contributions to your HSA on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. Contributions made by your employer and qualified HSA funding distributions are also shown on the form. This means that regardless of who made the contributions - you, your employer, or someone else - they all must be reported on Form 8889. The form is used to calculate your deduction and ensure that total contributions do not exceed the annual limits of $3,550 for self-only coverage or $7,100 for family coverage.
Form 8889. Report all contributions to your HSA on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. You should include all contributions made for 2020, including those made from January 1, 2020, through April 15, 2021, that are designated for 2020. Con- tributions made by your employer and qualified HSA fund- ing distributions are also shown on the form.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Money left in the account at year end is not lost
In the United States, money left in an HSA at year end is not lost. The contributions remain in your account until you use them. This means that unused funds carry over from year to year indefinitely. Unlike flexible spending arrangements (FSAs) that may have use-it-or-lose-it rules, HSA funds do not expire at the end of the plan year or calendar year. The account balance continues to grow as additional contributions are made and as the assets in the account earn interest or other investment earnings, which are also tax free. This feature makes an HSA a powerful long-term savings vehicle for medical expenses, allowing you to build up reserves for future healthcare costs, including expenses in retirement. The account is also portable, meaning it stays with you if you change employers or leave the workforce.
The contributions remain in your account until you use them.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Enrolling in Medicare shuts off your contribution limit
In the United States, enrolling in Medicare shuts off your HSA contribution limit. Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. This rule applies to periods of retroactive Medicare coverage. So, if you delayed applying for Medicare and later your enrollment is backdated, any contributions to your HSA made during the period of retroactive coverage are considered excess. This means that once you become enrolled in Medicare, you can no longer make contributions to your HSA, even if you are still covered under a high deductible health plan (HDHP). The monthly contribution limit drops to zero starting with the month of Medicare enrollment, regardless of whether you have self-only coverage (which would otherwise allow $3,550 annually) or family coverage (which would otherwise allow $7,100 annually).
Enrolled in Medicare. Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. This rule applies to periods of retroactive Medicare coverage. So, if you delayed applying for Medicare and later your enrollment is backdated, any contributions to your HSA made during the period of retroactive coverage are considered excess.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2019-25 (Internal Revenue Bulletin 2019-22) (IRS)
- Self-only
For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,550.
- Family
For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,100.
- HDHP minimum deductible, self-only
For calendar year 2020, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage
- HDHP minimum deductible, family
For calendar year 2020, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage
- HDHP out-of-pocket maximum, self-only
the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
- HDHP out-of-pocket maximum, family
the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
- Catch-up limit, age 55 and over
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.