2020 HSA LIMITS.
The IRS has released inflation-adjusted limits for Health Savings Accounts in 2020. The annual limitation on deductions for individuals with self-only coverage under a high deductible health plan (HDHP) is $3,550. The contribution limit for employees with family coverage under an HDHP is $7,100. The increases are $50 and $100, respectively.
The IRS defines a “high deductible health plan” as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage. It limits annual out-of-pocket expenses such as deductibles and copayments to $6,900 for self-only coverage or $13,800 for family coverage. These figures are small increases from tax year 2019.
INCOME UP.
Americans’ personal income continues to rise, according to figures from the U.S. Bureau of Economic Analysis (BEA). Personal income increased 0.5% in April, according to the Bureau’s estimates. Disposable personal income increased 0.4% and personal consumption expenditures rose 0.3% during the same timeframe. Income increases were primarily seen in personal interest, wages and salaries, and government social benefits. The same April BEA report showed that Americans’ personal savings rate was 6.2% of disposable income.
GREYER WORKFORCE.
The number of older Americans in the workforce continues to increase, according to the Bureau of Labor Statistics. The participation rate for workers ages 65 to 74 is projected to be 30.2% in 2026, compared with 17.5% percent in 1996, while workers age 75 and older are expected to participate at a rate of 10.8% in 2026, up from 4.7% in 1996.