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Wednesday, 11 September 2019
2020 Health Savings Account limits

Good news, the annual HSA contribution limits continue to increase (a little bit). For 2020 a person with employee only coverage will be able to contribute $3,350, up from $3,500 in 2019. If you cover dependents on your medical plan you can put $7,100 away on a pre-tax, tax free basis. This is a $100 increase from 2019. 

One of the challenges I have with HSA rules is why a person has to have a $2,800 deductible to be eligible to contribute. I understand if you have a "shared" deductible it's only $1,400 but those are the exception to the rule. I am a huge HSA fan and encourage everyone who is eligible to try it because there is nothing to lose. 

Many financial experts are saying an HSA even without a match is a better long-term retirement strategy than your 401-k (traditional or Roth). The reason is that you can put in tax deductible dollars on the frontend, your money grows tax-free and if taken out for qualified expenses comes out tax-free. That is a fantastic program, get on board, set up your account and fund it as heavily as possible. 

Have an excellent day, we appreciate your business. Have questions or need group insurance help in Tennessee, call me. David Moore 615-724-1701

Posted on 09/11/2019 9:43 AM by David Moore