Health Savings Account

IRS Announces 2019 Adjustments for Qualified HDHPs and HSA Contributions

On May 10, the IRS announced 2019 Health Savings Account contribution limit increases within their release of Revenue Procedure 2018-30.

HSA 2018 2019
Individual contribution limit $3,450 $3,500
Family contribution limit $6,900* $7,000

 

In 2019, the HSA contribution limit for an individual will increase by $50 to $3,500 and for a family by $100 to $7,000. As a reminder, the 2018 family contribution limit recently increased to $6,900 with the update released by the IRS* on April 26, 2018.

In addition, the 2019 High Deductible Health Plan deductible amounts and out-of-pocket expense limits were also announced. To be eligible to contribute to an HSA in 2019, one must be enrolled in a high deductible health plan that meets the following requirements:

HDHP (individual) 2018 2019
Minimum annual deductible $1,350 $1,350
Maximum annual out-of-pocket $6,650 $6,750

 

HDHP (family) 2018 2019
Minimum annual deductible $2,700 $2,700
Maximum annual out-of-pocket $13,300 $13,500
2020 HSA Contribution Limits

The Internal Revenue Service (IRS)  has released the 2020 inflation-adjusted amounts for Health Savings Accounts (HSAs). Contribution limits, minimum deductibles, and the maximum for out-of-pocket expenses all go up next calendar year.

2020 HSA Contribution Limits

Starting January 1, 2020, annual maximum contribution levels will rise for both individual and family coverage. Account holders with individual coverage will be able to contribute $3,550, a $50 increase from 2019. Those with family coverage may contribute up to $7,100, a $100 increase from 2019.

Minimum Deductible for HDHPs

The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). In 2020, the individual coverage minimum deductible is $1,400, up $50; the family coverage minimum deductible goes up to $2,800, a $100 increase.

Maximum for Out-of-Pocket Expenses 

The maximum limit for out-of-pocket expenses is going up in 2020, as well. Those with individual coverage will have a $6,900 limit, a $150 increase. Account holders with family coverage see a $300 increase to $13,800.

Catch Up Contributions

The 2020 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.

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