The IRS has increased health savings account contribution limits for 2019, along with changes to the out-of-pocket expenses for HSA-qualifying high-deductible health plans (HDHPs).

The 2019 HSA contribution maximum will be $3,500 for individual coverage, from $3,450 this year. The contribution maximum for family coverage will increase to $7,000 from the current $6,900.

Individuals age 55 or older not yet enrolled in Medicare may make a catch-up HSA contribution of up to $1,000 – an amount that remains unchanged from last year’s catch-up limit.

This most recent set of limit adjustments fits the pattern of previous years, with the IRS announcing HSA limits in early May for the following tax year and generally leaving those limits unchanged throughout the tax year.

However, this year the IRS made a surprise announcement that it had reduced the 2018 maximum family contribution to an HSA from $6,900 to $6,850. (Individual contribution limits weren’t impacted at the time.)

It was forced to make the change due to a provision in the tax reform law that changed the way that inflation-related increases are calculated from the Consumer Price Index.

It also announced in April that it would allow taxpayers to treat the 2018 HSA contribution limit for an individual with family coverage under a HDHP as $6,900.


HDHP deductibles and out-of-pocket maximums

The minimum deductibles for HSA-qualified HDHPs are unchanged for 2019: $1,350 for individual coverage, and $2,700 for family coverage.

But, the 2019 out-of-pocket maximums for HDHPs were increased to $6,750 for individual coverage and $13,500 for family coverage, from $6,650 and $13,300 respectively this year.

The increases for HDHP out-of-pocket maximums allow plan sponsors more flexibility when determining potential deductibles. They also factor into the decision-making process for account holders when determining how much to contribute to their HSA.