17 May 2018

New HSA/HDHP Limits for 2019

The IRS has announced the inflation-adjusted limits for health savings accounts and high deductible health plans for 2019.  The annual contribution limits and HDHP maximum out-of-pocket limits will be increasing.  Below is a summary:

2018 2019 HSA HDHP limites table

*The 2018 family HSA contribution limit was initially set at $6,900. The tax reform legislation enacted in late 2017 changed the method of adjusting for inflation beginning in 2018 and the IRS recalculated various annual limits in light of the new rules. Most of the limits were not adjusted as a result of the change. However, in March 2018, the IRS made one key adjustment regarding the 2018 family HSA contribution limit, decreasing from $6,900 to $6,850.

Stakeholders, including individuals, employers and HSA trustees and custodians, pushed back on the IRS. As a result of the comments received, the IRS announced on April 26, 2018 that it would allow taxpayers to contribute up to $6,900 under the family HSA contribution limit for 2018 after all. If an individual contributed the full $6,900 and already requested and received a $50 distribution, the taxpayer may repay the distribution, including earnings, to his/her HSA.

If you have any questions regarding HSAs or high deductible health plans or the new limits, please contact the authors or any member of the Employee Benefits practice group.