IRS adjusts health savings account limits for 2019

The Internal Revenue Service has issued a revenue procedure providing the 2019 inflation-adjusted amounts for health savings accounts.

In Revenue Procedure 2018-30, the IRS said the annual limitation on deductions for an individual with self -only coverage under a high deductible health plan is $3,500 for calendar year 2019. Also for next year, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $7,000.

A “high deductible health plan” is defined as a health plan with an annual deductible of no less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co- payments, and other amounts, but not premiums) don’t exceed $6,750 for self-only coverage or $13,500 for family coverage for 2019.

Earlier this year, the IRS changed the family coverage contribution limit for 2018 for HSAs from $6,900 to $6,850 in response to the Tax Cuts and Jobs Act, but then reversed course and raised it again to $6,900.

Under the new revenue procedure, the contribution limitation for self-only coverage is going up $50 from $3,450 in 2018 to $3,500 in 2019, while the annual deductible for a high deductible health plan stays $1,350 for self-only coverage.

An American flag flies outside the Internal Revenue Service headquarters at sunrise in Washington, D.C.
An American flag flies outside the Internal Revenue Service (IRS) headquarters at sunrise in Washington, D.C., U.S. Photographer: Andrew Harrer/Bloomberg

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