Health Savings Accounts for 2019

Recently, the IRS confirmed that the contribution limits for 2018, which were announced in 2017, are unchanged for the year, despite the requirement in the Tax Cuts and Jobs Act that the IRS refigure the numbers using chained CPI (Rev. Proc. 2018- 27). Now the IRS has announced next year’s contribution limits for health savings accounts (HSAs), as well as requirements for high-deductible health plans (HDHPs) to which HSAs must be linked (Rev. Proc. 2018-30).

For 2019, the maximum deductible contribution to an HSA is $3,500 (up from $3,450 in 2018) for self-only coverage, or $7,000 (up from $6,900 in 2018) for family coverage.  The annual contribution limit is $1,000 higher if you are age 55 by the end of the year but not on Medicare. Starting with the month you enroll in Medicare, you may not make any further HSA contributions.

You can only contribute to an HSA if you have health coverage through an HDHP. To be an HDHP in 2019, a self-only coverage plan must have a minimum annual deductible of $1,350 (no change from 2018), and an out-of-pocket limit of $6,750 (up from $6,650 in 2018). For family coverage, the minimum annual deductible is $2,700 (the same as in 2018), and the cap on out-of-pocket costs is $13,500 (up from $13,300).

The deadline for making HSA contributions:

• For 2018: April 15, 2019
• For 2019: April 15, 2020