IRS Announces 2019 HSA Limits

2019 may seem like a long time off – but the Internal Revenue Service has already published the 2019 inflation-adjusted amounts for health savings accounts (HSAs).

In Revenue Procedure 2018-30, the IRS notes that for calendar year 2019, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,500. For calendar year 2019, the annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $7,000, up from the recently reset $6,900 limit for 2018.

For calendar year 2019, the IRS defines a “high-deductible health plan” as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,750 for self-only coverage or $13,500 for family coverage.

The announcement comes just a couple of weeks after the IRS announced relief for taxpayers (and arguably for plan sponsors) regarding a reduction in the 2018 maximum contribution limits for health savings accounts (HSAs) that resulted from tax reform legislation.

Text of Revenue Procedure 2017-37 is here.

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