The IRS announced the 2019 HSA Contribution Limits this week!
Investors in health savings accounts will see a small bump in contribution limits for the calendar year beginning in 2019, according to the IRS.
For 2019, the annual limit on deductible contributions will be $3,500 for individuals with self-only coverage, a $50 increase from 2018, and $7,000 for family coverage, a $100 increase from 2018. Annual out-of-pocket expenses will also increase in 2019: Deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $6,750 for individual coverage next year, up $100 from 2018, and $13,500 for family coverage, up $200 from 2018.
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.
Catch-up contributions for workers over age 55 will remain at $1,000.
The adjustments reflect the application of the Chained Consumer Price Index, or Chained CPI, inflation gauge to HSAs and other tax deductions, which was legislated with the signing of the Tax Cuts and Jobs Act last December.
Previously, the Consumer Price Index, or CPI, was used to set HSA contribution increases.
