2019 HSA Contribution Limits
The Internal Revenue Service has announced new contribution limits for Health Savings Accounts (HSAs) in 2019. An HSA is a bank account that can be used in conjunction with a high deductible health plan to save pre-tax funds for medical expenses. Both employers and employees can contribute to the account, but the account and all monies contained within are owned by the employee. HSAs can provide a significant way to save for current and future medical expenses free of tax.
HSA CONTRIBUTION LIMITS
- Individual Coverage:The 2019 contribution limit for those with individual coverage is $3,500, which is up $50 from 2018.
- Family Coverage: The 2019 contribution limit for those with family coverage is $7,000.In March of 2018, the IRS announced a reduction of the 2018 limits by $50 to $6,850, with the justification that the old limits were created using Consumer Price Index (CPI) but that the use of Chained CPI is now mandated due to the Tax Cuts and Jobs Act.Then, at the end of April, the IRS reversed its statement and announced that it would accept $6,900 as the maximum HSA contribution for family coverage.
For more information on HSAs, high deductible health plans, or other assistance, please contact our Employee Benefit Services team at 210–640–1789, toll-free at 1–888–757–2104, or EmployeeBenefits@BFGonline.com.