IRS Announces HSA Limits for 2019

On May 10, 2018, the Internal Revenue Service (IRS) released Revenue Procedure 2018-30 announcing the annual inflation-adjusted limits for health savings accounts (HSAs) for calendar year 2019. An HSA is a tax-exempt savings account employees can use to pay for qualified health expenses.

To be eligible for an HSA, an employee:

• Must be covered by a qualified high deductible health plan (HDHP);
• Must not have any disqualifying health coverage (called “impermissible non-HDHP coverage”);
• Must not be enrolled in Medicare; and
• May not be claimed as a dependent on someone else’s tax return.

The limits vary based on whether an individual has self-only or family coverage under an HDHP. The limits are as follows:

• 2019 HSA contribution limit:
  • Single: $3,500 (an increase of $50 from 2018)
  • Family: $7,000 (an increase of $100 from 2018)
  • Catch-up contributions for those age 55 and older remains at $1,000
• 2019 HDHP minimum deductible (not applicable to preventive services):
  • Single: $1,350 (no change from 2018)
  • Family: $2,700 (no change from 2018)
• 2019 HDHP maximum out-of-pocket limit:
  • Single: $6,750 (an increase of $100 from 2018)
  • Family: $13,500* (an increase of $200 from 2018)

*If the HDHP is a nongrandfathered plan, a per-person limit of $7,900 also will apply due to the Affordable Care Act’s cost-sharing provision for essential health benefits.

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