IRS Announces HSA Limits for 2019

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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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