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Welcome to the latest edition of our DID YOU KNOW newsletter. This newsletter is filled with some important and useful product and market updates for you and your family.
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IRS ANNOUNCES HSA LIMITS FOR 2020
Health Savings Account (HSA) Benefits! As you may already be aware, when you are enrolled in a High Deductible Health Plan or HDHP health plan, you have the option of simultaneously setting up a tax-advantaged Health Savings Account or HSA at your local bank or credit union. HSA contributions (monies deposited into the account) are not subject to federal income taxes. In addition, interest earned on the account and qualified distributions are also tax free, as long as they are used for qualified expenses! Eligible medical expenses include deductibles, coinsurance, prescriptions, vision expenses, and dental care and many OTC/over-the-counter items!
One of the best benefits . . . unused HSA funds roll over year after year – no ‘use it’ or ‘lose it’ rules, commonly associated with other tax-advantaged accounts. HSAs can be an excellent way to save for future healthcare needs well into retirement!
Each year the IRS releases updated account limits. See the below chart for the 2020 IRS contribution limits just announced. If you’d like to learn more about HSAs, please feel free to contact our office. And as always, we recommend you discuss specific tax implications with your financial and/or tax advisor.
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| IRS ANNOUNCES HSA LIMITS FOR 2020 |
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Contribution and Out-of-Pocket Limits
For Health Savings Accounts and High-Deductible Health Plans
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2020 |
2019 |
Change |
| HSA contribution limit |
Self-only: $3,550
Family: $7,100 |
Self-only: $3,500
Family: $7,000 |
Self-only: +$50
Family: +$100 |
HSA catch-up contributions
(age 55 or older) |
$1,000 |
$1,000 |
No change |
HDHP minimum
Deductibles |
Self-only: $1,400
Family: $2,800 |
Self-only: $1,350
Family: $2,700 |
Self-only: +$50
Family: +$100 |
| HDHP maximum out-of-pocket amounts (deductibles, copayments and other amounts, but not premiums) |
Self-only: $6,900
Family: $13,800 |
Self-only: $6,750
Family: $13,500 |
Self-only: +$150
Family: +$300 |
| Source: IRS, Revenue Procedure 2019-25. |
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Prescription Savings!
We receive many questions about discount or 'coupon' prescription websites throughout the year, so we wanted to pass along a couple great money-saving tips. These programs are not insurance, rather ‘point-of-sale’ discount savings sites, which are most often free to use. Many times these discount programs will offer better deals on certain prescriptions versus what your insurance carrier might offer. For those of our clients enrolled in a high deductible health plan – ‘shopping’ around for your medications or an occasional high cost medication you might be prescribed is highly recommended!
Several of these sites include: goodrx.com or blinkhealth.com or ohiodrugcard.com. Check them out!
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Travel/Overseas Medical Coverage!
We want to take this opportunity to remind you to be prudent about making sure your current health policy has coverage for you and your family if traveling out of the United States or overseas.
Remember, all travel policies are NOT created equal, be sure to check the exclusions and limits, including possible limitations on pre-existing conditions.
So, whether it’s a ‘bucket list’ trip to the Mediterranean or college-aged students studying abroad in Asia over a semester– be sure you and your family are protected. Our office can assist with matching the right plan, for the right cost, for the right client.
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As always, we appreciate your continued trust in our office and we are here to assist throughout the year with any questions you might have.
Warm Regards,
Kelly, Annemarie and Sara
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This email was sent by: KW Consulting, Inc.
Office: 440.834.0684
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