Question

Jack is age 45 and owns a self-only high deductible health policy with a $7,000 deductible under his HSA. What is his maximum permitted HSA contribution in 2020?

Answer 1

Answer:

$3350

Step-by-step explanation:

HSA holders have the opportunity to keep a certain amount in reserve up to $3350 for an individual and $6650 for a family. Those that are 55 and older have the opportunity to accumulate an additional $1000 which implies that $4350 per individual and $7650 per family, in which these contributions require 100% tax -deductible at gross income.

Thus, the maximum permitted HSA contribution in 2020 for Jack is $3350.