2020 HSA Contribution Limit
For 2020, the HSA Contribution Limit is $3,550 (Self-only), $7,100 (Family), $1,400 (HDHP minimum deductible, self-only) and 3 more figures below.
| Item | Self-only | Family |
|---|---|---|
| HDHP minimum deductible | $1,400 | $2,800 |
| HDHP out-of-pocket maximum | $6,900 | $13,800 |
Effective 2020-01-01Source: Rev. Proc. 2019-25 (Internal Revenue Bulletin 2019-22) (IRS)Verified 2026-09-01
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%) |
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
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). However, see Enrolled in Medicare, later.
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
You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contributions 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 Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account. You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet certain conditions, including withdrawing the excess by the due date of your tax return for the year the contributions were made.
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
There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Figure the tax on Form 8889 and file it with your Form 1040, 1040-SR, or 1040-NR. Exceptions. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
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. Exceptions. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
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.