|The IRS announced an increase to the maximum HSA contribution limits for the 2020 calendar year in Revenue Procedure 2019-25.|
The individual contribution limit has been raised from $3,500 to $3,550. The family contribution limit has been raised from $7,000 to $7,100. Flexible Spending Accounts (Health Care FSAs, Dependent Care FSAs, Parking and Transit plans) were not affected.
Baker Tilly Vantagen is prepared to support our partners in light of this change. As a first step, our myFlexDollars portal was updated on May 29, 2019 to reflect the new maximum contribution limits.
This change is situated far away from the busy annual enrollment period for many employers, which makes announcing it also a great time to focus on HSA education. The target audience is better positioned now to absorb concepts like the triple tax advantage, investment options and eligibility requirements than it will be later. Strike now while the “iron is hot” when it comes to helping employees open up to HSAs.
If you have questions about this update or need expert help, contact our team.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.