The IRS recently released the 2019 annual contribution limits for health savings accounts (HSAs). These limits are typically adjusted each year as a result of inflation.
The 2018 limits are $3,500 for an individual with self-only coverage and $7,000 for an individual with family coverage. Catch-up contributions for individuals age 55 or older remain at $1,000. These pre-tax contributions can only be made to an HSA that is maintained in conjunction with a high-deductible health plan.
A high-deductible plan is defined as a plan with an annual deductible of $1,350 or more for self-only coverage or $2,700 or more for family coverage. The corresponding maximum out of pocket expenses is $6,750 and $13,500 respectively, which is an increase from the 2018 amounts.
HSAs continue to be a powerful tool in combating the rise in health costs, especially for young, healthy adults. Employers should continue to evaluate their effectiveness as part of an overall health benefits strategy.
If you have any questions regarding the new HSA contribution limits, please contact Mark Flanagan and our compensation and benefits specialists at 301.231.6200.