Posted 2 years ago - by

Rising HSA Contribution Limits for 2019

The 2019 HSA and High-Deductible Health Plans Contribution Limits have been announced by the IRS. Should any changes occur over the next few months, we will inform you! See below for updates:

Health Savings Account (HSA)

  • $3,500 Individual
  • $7,000 Family

HSA Catch-Up Contributions (age 55 or older)

  • $1,000

HDHP Minimum Deductibles

  • $1,350 Individual
  • $2,700 Family

HDHP Maximum Out-of-Pocket Amounts (deductibles, co-payments and other amounts, but not premiums)

  • $6,750 Individual
  • $13,500 Family

More information regarding health savings accounts:

  • Paired with a high-deductible health plan
  • Employees can contribute pre-tax dollars into this account
  • Employers can also contribute non-taxable funds into this plan
  • Account “owner” is the employee
    • The account follows the employee if they leave the company
  • The funds in the account roll-over every year
    • This is not a use or lose plan
  • The account is also a savings/retirement plan
    • It accrues interest
    • Funds can be invested
    • Once the account owner turns 65, they have access to the funds similar to that of a 401K account
  • Cannot be paired with a Medical FSA
    • The IRS does not allow employees to place pre-tax funds into both a Medical FSA and an HSA

 

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.