In response to the current coronavirus (COVID-19) emergency, the Internal Revenue Service (IRS) postponed the deadline for individuals to pay their federal income taxes from April 15, 2020 to July 15, 2020. The IRS also released additional guidance on the due date extension.

As a result of a change to the tax filing deadline, the IRS has stated that individuals now have until July 15, 2020 to make 2019 contributions to their Health Savings Account (HSA).  Please note that the 2019 HSA limits have not changed.

 

Background

Eligible individuals can use their HSA to set aside pre-tax amounts to help pay for qualified medical expenses. The IRS puts limits on the pre-tax contributions that can be made to an HSA each year. The 2019 HSA maximum contribution amounts were as follows:

 

Coverage2019 HSA Maximum Contribution
Single$3,500
Family$7,000
55+ Catch Up$1,000

 

Eligible individuals can make HSA contributions towards that year’s IRS limit until the deadline for filing federal income taxes, which is usually April 15th of the following year.

 

Extended Deadline

Since this year’s tax deadline has been pushed back, the deadline for eligible individuals to make 2019 contributions to their HSA has also been extended. In other words, if an eligible individual has not yet contributed up to the 2019 HSA maximum, they still have until July 15, 2020 to do so.

Individuals should reach out to their HSA vendor to determine how to make any additional contributions.

 

Additional Resources

The information and materials on this blog are provided for informational purposes only and are not intended to constitute legal or tax advice. Information provided in this blog may not reflect the most current legal developments and may vary by jurisdiction. The content on this blog is for general informational purposes only and does not apply to any particular facts or circumstances. The use of this blog does not in any way establish an attorney-client relationship, nor should any such relationship be implied, and the contents do not constitute legal or tax advice. If you require legal or tax advice, please consult with a licensed attorney or tax professional in your jurisdiction. The contributing authors expressly disclaim all liability to any persons or entities with respect to any action or inaction based on the contents of this blog.

Emerald Law – Emerald is a Client Compliance Consultant for Sequoia, where she works with our clients to optimize and streamline benefits compliance. In her free time, Emerald enjoys stand-up comedy, live music and writing non-fiction.