What is the allowable HSA contribution for 2020?

Health Savings Accounts (HSAs) are a popular way for individuals to save money for medical expenses while enjoying tax benefits. For the year 2020, the allowable HSA contribution limits are set by the IRS and are as follows:

• For individuals with self-only coverage, the maximum contribution is $3,550.
• For individuals with family coverage, the maximum contribution is $7,100.
• For individuals aged 55 and older, an additional catch-up contribution of $1,000 is allowed.

It is important to note that these contribution limits are subject to change each year, so it's crucial to stay updated on the current limits to maximize the benefits of your HSA.

Health Savings Accounts (HSAs) provide a smart way to put aside money for healthcare costs while reaping significant tax advantages. As specified by the IRS for the year 2020, individuals can contribute up to $3,550 if they have self-only health coverage, and families can contribute a maximum of $7,100. Additionally, anyone aged 55 or older can add an extra $1,000 as a catch-up contribution, allowing them to save even more for their medical needs.