What is the Minimum Deductible for an HSA in 2020?

Health Savings Accounts (HSAs) have become increasingly popular as a way to save for medical expenses while enjoying tax benefits. One of the key components of an HSA is the deductible, which is the amount you must pay out-of-pocket for covered expenses before your insurance starts to cover costs. So, what is the minimum deductible for an HSA in 2020?

In 2020, for an HSA-compatible High Deductible Health Plan (HDHP), the minimum deductible requirements are:

• Self-only coverage: The minimum deductible is $1,400.
• Family coverage: The minimum deductible is $2,800.

It's important to note that these figures are set by the IRS and may change annually. By understanding the minimum deductible requirements for HSAs, individuals can make informed decisions about their healthcare and savings.

HSAs offer a range of benefits, including:

• Tax deductions on contributions
• Tax-free growth on funds
• Withdrawals for qualified medical expenses are tax-free
• Portability, as the account stays with you even if you change jobs

By contributing to an HSA, individuals can save for current and future medical expenses while also enjoying tax advantages.

Health Savings Accounts (HSAs) are not just a tax shield; they provide a smart way to save for medical expenses. In 2020, to qualify for these benefits, you'll need to be aware of the minimum deductible requirements for your High Deductible Health Plan (HDHP). These amounts are $1,400 for self-only coverage and $2,800 for family coverage, as set forth by the IRS.