2019 HSA contribution limits, out-of-pocket expense limits, and HDHP minimum deductibles were announced by the IRS in Revenue Procedure 2018-30. Health Savings Account owners will see an increase in contribution limits and out-of-pocket expense limits. The new amounts go into effect January 1, 2019.
2019 HSA Contribution Limits
HSA owners will see an increase in the 2019 HSA contribution limits for both self-only and family coverage. The annual contribution limit for individuals with self-only coverage will go up by $50 to $3,500. For those with family coverage, their annual contribution limit will go up by $100 to $7,000.
Earlier in 2018, the IRS adjusted the family contribution limit to $6,850 for HSAs due to the Tax Cuts and Jobs Act. However, the agency reversed its decision and reinstated the $6,900 limit in April 2018.
Learn more about 2018 HSA contribution limits.
Catch Up Contributions
For those 55 years and older, the 2019 HSA catch up contribution limit remains the same – $1,000. With a catch-up contribution, people who have self-only coverage can contribute up to $4,500 in 2019; those who have family coverage can contribute a maximum of $8,000.
2019 HDHP Minimum Deductibles
Annual high deductible health plan (HDHP) deductibles are unaffected for 2019, and will remain at $1,350 for those with self-only coverage, and $2,700 for people with family coverage.
2019 Out-of-Pocket Expense Limits
While the HDHP minimum deductibles went unchanged, maximum out-of-pocket expense limits went up. For self-only coverage, annual out-of-pocket expense limits cannot exceed $6,750, a change of $100. For family coverage, annual out-of-pocket expense limits cannot exceed $13,500, a $200 increase.
Self-Only Coverage (compared to 2018)
|Annual deductible (minimum)||$1,350||$1,350|
|Out-of-pocket expense (maximum)||$6,650||$6,750|
Family Coverage (compared to 2018)
|Annual deductible (minimum)||$2,700||$2,700|
|Out-of-pocket expense (maximum)||$13,300||$13,500|
HSA Eligible Expenses
Health Savings Accounts can be used for a wide variety of qualified out-of-pocket expenses. Learn more about HSA eligible expenses.
Recent HSA Market Growth
Since 2011, HSAs have grown from 6.76 million accounts to 22.21 million in 2017. A recent whitepaper by DataPath, entitled “How TPAs Can Overcome Potential Pitfalls to Deliver a Unified HSA Experience and Maximize Earnings,” addresses TPA concerns about revenue opportunities in the market, the amount of work involved in managing HSAs, and the need to maintain multiple business and banking relationships. The whitepaper also analyzes possible technology solutions for HSA administration. Read the press release.
In 2019, the annual contribution limit for individuals with self-only coverage is $3,500. For those with family coverage, their annual contribution limit is $7,000.
In 2019, the IRS maximum HSA annual contribution limit for individuals with self-only coverage is $3,500. For those with family coverage, the IRS maximum HSA annual contribution limit is $7,000.
You can contribute to your HSA at any time during the year. However, most people contribute to their HSA at each pay period, up to the maximum allowed IRS contribution limit.
In 2019, the annual contribution limit for individuals with self-only coverage is $3,500. For those with family coverage, the annual contribution limit is $7,000.
Generally speaking, you should not have separate HSA accounts for 2018 and 2019 unless you have switched HSA providers. Either way, you cannot credit an HSA contribution to a previous year. Any contributions made are applicable to the current year.
DataPath is an industry-leading technology provider of benefits administration solutions. Their cloud-based Summit solution empowers TPAs to administer CDH accounts, HSAs, and COBRA within a single platform. Summit HSA features all-in-one HSA management, including account administration, custodial banking, and investments.