On May 10, 2018, the Internal Revenue Service (IRS) announced in Revenue Procedure 2018-30 the 2019 limits for contributions to Health Savings Accounts (HSAs) and definitional limits for High Deductible Health Plans (HDHPs). These inflation adjustments are provided for under Internal Revenue Code Section 223.
For the 2019 calendar year, a HDHP is a health plan with an annual deductible that is not less than $1,350 for self-only coverage and $2,700 for family coverage (i.e., the same as 2018). 2019 annual out-of-pocket expenses (deductibles, copayments and other amounts, excluding premiums) cannot exceed $6,750 for self-only coverage and $13,500 for family coverage.
For individuals with self-only coverage under a HDHP, the 2019 annual contribution limit to an HSA is $3,500 and for an individual with family coverage, the HSA contribution limit is $7,000.
HSA and HDHP Limitations
|2018 Individual||2018 Family||2019 Individual||2019 Family|
|HSA Contribution Limits (Employer & Employee)||$3,450||$6,900||$3,500||$7,000|
|HDHP Deductible Limits||$1,350||$2,700||$1,350||$2,700|
|HDHP Out-of-Pocket Limits||$6,650||$13,300||$6,750||$13,500|
No change was announced to the HSA catch-up contribution limit. If an individual is age 55 or older by the end of the calendar year, he or she can contribute an additional $1,000 to his or her HSA. If married and both spouses are age 55, each individual can contribute an additional $1,000 into his or her individual account.
For married couples with family coverage, they must have two HSA accounts if they want to contribute the maximum $7,000 (or $9,000 if both are eligible for catch-up contributions). The contribution cannot be maximized with only one account. One individual would contribute the family coverage maximum plus his or her individual catch-up, and the other would contribute the catch-up maximum to his or her individual account.
Plan sponsors should ensure that all participant communications for the 2019 plan year reflect the new limits.Findley Post