The IRS limits for HSA contributions are set to increase for 2019. This also includes the limits for HDHPs.
The Internal Revenue Service (IRS) announced the inflation-adjusted limits on health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2019 on May 10, 2018. The Revenue Procedure 2018-30 details the following limits:
- The maximum HSA contribution limit
- The minimum deductible amount for HDHPs
- The maximum “out-of-pocket” limit for HDHPs
Some dates to remember. On January 1, 2019 the increase in HSA contributions limits will go into effect. As for the HDHP limits, those increases will be effective for plan years beginning on or after January 1, 2019.
Now, let’s get to numbers. The HDHP Minimum Deductible for both self and family will remain unchanged; $1,350 for self-only and $2,700 for family. Another unchanged amount is the HSA catch-up contributions for those age 55 or older; from 2018 to 2019 the amount remains at $1,000.
For the HSA contribution limit, Self-only contributions jumped from $3,450 to $3,500 from 2018 to 2019. The Family limit made a $100 jump between 2018 and 2019; from $6,900 to $7,000.
The maximum out-of-pocket expense limit includes such things as deductibles, copayments, and other amounts that do not fall under premiums. This was the area of greatest increase, across the board. From 2018 to 2019 Self-only out-of-pocket increase from $6,650 to $6,750. The family limits increased by a factor of $200, increasing to $13,500 from the 2018 limit of $13,300.
What does this mean for employers? Due to these changes, employers that sponsor HSA and HDHP plans may look to adjust their plan design for the beginning of 2019. It’s recommended that employers communicate the HSA contribution limits to employees as part of the enrollment process and that all enrollment materials be updated to reflect the increased limits.