IRS Issues 2019 HSA, HDHP Limits

IRS Issues 2019 HSA, HDHP Limits

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IRS Issues 2019 HSA, HDHP Limits
Calendar17 May 2018

The IRS has announced 2019 inflation-adjusted amounts for health savings accounts (HSAs) and high-deductible health plans (HDHPs), reflecting the switch to chained CPI for annual adjustments effective in 2018. The new indexing method reduced the 2018 maximum contribution for family-level HDHP coverage from the originally published amount. However, IRS transition relief has restored that limit to the initial level of $6,900.

In 2019, the tax-deductible HSA contribution limit and HDHP out-of-pocket maximums increase for both self-only and family coverage levels, while HDHP minimum annual deductibles are unchanged from the 2018 levels. The HSA catch-up contribution is set by statute and is not indexed for inflation after 2009. The table below shows the limits for 2017‒2019.

HSA and HDHP limits

2019

2018

2017

Self-only coverage

     

 Maximum tax-deductible HSA contribution

$3,500

$3,450

$3,400

 HDHP minimum annual deductible

  1,350

  1,350

  1,300

 HDHP out-of-pocket maximum

 6,750

 6,650

 6,550

Family coverage

     

 Maximum tax-deductible HSA contribution

 7,000

 6,900

 6,750

 HDHP minimum annual deductible

 2,700

 2,700

 2,600

 HDHP out-of-pocket maximum

13,500

13,300

13,100

HSA catch-up contribution limit at age 55 or older

 1,000

 1,000

 1,000

 

ACA out-of-pocket maximums are higher. As announced by the Department of Health and Human Services in April, the 2019 out-of-pocket maximums for nongrandfathered group health plans will be $7,900 for individuals and $15,800 for families. These Affordable Care Act limits are higher than 2019 HDHP out-of-pocket maximums.

This update first appeared on Mercer Select Intelligence. Not a member? Learn more

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