On May 10, 2018, the IRS released Revenue Procedure 2018-30 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2019. These limits include:
- The maximum HSA contribution limit
- The minimum deductible amount for HDHPs
- The maximum out-of-pocket expense limit for HDHPs
These limits vary based on whether an individual has self-only or family coverage under an HDHP. The IRS limits for HSA contributions will increase for 2019. The HDHP maximum out-of-pocket limits will also increase for 2019. The HSA contribution limits will increase effective Jan. 1, 2019, while the HDHP limits will increase effective for plan years beginning on or after Jan. 1, 2019.
The 2019 limits are as follows:
- HSA contribution limit
- Self-only—$3,500 (up $50 from 2018)
- Family—$7,000 (up $100 from 2018)
- HDHP minimum deductible
- Self-only—$1,350 (no change)
- Family—$2,700 (no change)
- HDHP maximum out-of-pocket expense limit
- Self-only—$6,750 (up $100 from 2018)
- Family—$13,500 (up $200 from 2018)
There will not be a change to the catch-up contribution limit that applies to HSA-eligible individuals who are age 55 or older as it is not adjusted for inflation. That limit will remain at $1,000.
Remember, these limits apply to plan years beginning on or after Jan. 1, 2019. Because the cost-sharing limits for HDHPs will change for 2019, employers that sponsor these plans may need to make plan design changes for plan years beginning in 2019. Also, if an employer communicates the HSA contribution limits to employees as part of the enrollment process, these enrollment materials should be updated to reflect the increased limits that apply for 2019.
Please contact us today if you would like more information regarding these changes or if you would like access to employee communication materials.
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