Who Can Contribute to an HSA in 2020?

Health Savings Accounts (HSAs) are a valuable financial tool that can help individuals save for medical expenses while enjoying tax benefits. One common question that many people have is “Who can contribute to an HSA in 2020?”

HSAs are available to individuals who are covered under a High Deductible Health Plan (HDHP). In 2020, the IRS has set certain guidelines regarding who can contribute to an HSA:

• Individuals: If you have self-only coverage under an HDHP, you can contribute up to $3,550 in 2020.
• Family: If you have family coverage under an HDHP, you can contribute up to $7,100 in 2020.
• Age 55 and Older: Individuals who are 55 years or older can make an additional “catch-up” contribution of $1,000 per year.

It’s important to note that contributions to an HSA can be made by the account holder, their employer, or even a family member. Additionally, contributions to an HSA are tax-deductible and can be rolled over from year to year.

If you’re eligible to contribute to an HSA in 2020, it can be a smart way to save for future medical expenses while enjoying tax advantages. Make sure to check with your employer or financial advisor to understand the specifics of your HSA plan.

Did you know that Health Savings Accounts (HSAs) serve as not just a savings tool but also a fantastic way to reduce your taxable income? With certain eligibility criteria in place, it’s crucial to understand who can contribute to your HSA in 2020.