Mentor, OH – Jul 22, 2019 – Rea & Associates recently shared important news regarding Health Savings Account (HSA) contributions for the year 2020. According to the company, the IRS released its annual inflation-adjusted limits on deductions for HSA contributions in the year 2020. A member of the Rea & Associates retirement plan services team said the firm has chosen to share this news as a helpful reminder for American taxpayers.
Rea & Associates went on to share additional information regarding the 2020 limitations. According to Rea & Associates, increases in 2020 will allow employees to put a little more money into their HSA accounts. Rea & Associates clarified that these contributions especially affect taxpayers who participate in high-deductible health plans (HDHPs). Taxpayers who participate in HDHPs are allowed pre-tax payroll deductions for contributions to HSAs. Rea & Associates explained that these deductions help pay unreimbursed medical expenses (excluding premiums). Rea & Associates also said that individuals can contribute to HSAs, or employers can contribute on behalf of their employees.
Rea & Associates went on to break down the numbers for the 2020 limitations. In 2020, the minimal deductibles for a qualifying HDHP were increased to $1,400 for individual coverage (up from $1,350) and $2,800 for family coverage (up from $2,700). Rea & Associates also explained that the upper limit for out-of-pocket expenses (deductibles, co-payments, etc.) were increased to $6,900 for individual coverage (up from $6,750) and $13,800 for family coverage (up from $13,500). Rea & Associates did state that there is no change for HSA catch-up contributions for ages 55 and older. According to Rea & Associates, this amount remains fixed at $1,000.
Rea & Associates shared that an HSA is a great way to maximize healthcare dollars while minimizing the tax burden. The company cautioned that an HSA does require careful planning on behalf of the employer and employee. The company can also be seen at https://www.houzz.com/pro/reacpaoh/__public.
Rea & Associates closed its announcement by providing some helpful company information. In addition to providing health insurance consultation, Rea & Associates also provides payroll services, retirement planning, tax consultation, fiduciary consulting, transaction analysis, and a variety of other services to individuals and businesses in the state of Ohio.
Company Name: Rea & Associates
Contact Person: Becca Davis
Email: Send Email
Phone: (440) 266-0077
Address:7201 Center St.
State: Ohio 44060
Country: United States