Health Savings Accounts: 2019 Cost-of-Living Adjustments | Wolters Kluwer
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  • Health Savings Accounts: 2019 Cost-of-Living Adjustments

    Mike Schiller Onward

    by Mike Schiller, Consultant, Tax Advantaged Accounts, Wolters Kluwer

    Published May 16, 2018




    On Thursday, May 10, 2018 the Internal Revenue Service (IRS) released Revenue Procedure 2018-30 announcing the cost-of-living adjustments (COLAs) applicable to Health Savings Accounts (HSAs) for 2019.

    After application of the COLA rules, changes for 2019 include an increase in the contribution limits applicable to individuals who have self only or family high-deductible health plan (HDHP) coverage. Additionally, the maximum out-of-pocket expense limit that plays a role in determining whether a health plan is an HSA eligible HDHP will increase for 2019.

    The following tables indicate the HSA regular contribution limits for 2019 and 2018:

    HSA Regular Contribution Limits for 2019
    HDHP Coverage
    Standard Limit
    Catch-Up Contribution
    Contribution Limit if Age 55 or Older
    Self-Only
    $3,500
    $1,000
    $4,500
    Family
    $7,000
    $8,000

    HSA Regular Contribution Limits for 2018
    HDHP Coverage
    Standard Limit
    Catch-Up Contribution
    Contribution Limit if Age 55 or Older
    Self-Only
    $3,450
    $1,000
    $4,450
    Family
    $6,900*
    $7,900*

    *As indicated by the IRS in Revenue Procedure 2017-37 the 2018 contribution limit for individuals covered under a family HDHP was $6,900. As required by the Tax Cuts and Jobs Act, a recalculation of COLAs for 2018 reduced this limit to $6,850 as indicated by the IRS in Revenue Procedure 2018-18 (Section 4) in March, 2018. The IRS subsequently released Revenue Procedure 2018-27 allowing taxpayers covered under a family HDHP to treat $6,900 as the allowable contribution amount for 2018.

    The following tables indicate the HDHP minimum deductible and maximum out of pocket expense amounts for 2019 and 2018:

    HDHP Requirements for 2019
    HDHP Coverage
    Minimum Deductible
    Out-of-Pocket Expense
    Self-Only
    $1,350
    $6,750
    Family
    $2,700
    $13,500

    HDHP Requirements for 2018
    HDHP Coverage
    Minimum Deductible
    Out-of-Pocket Expense
    Self-Only
    $1,350
    $6,650
    Family
    $2,700
    $13,300

    For an opportunity to learn more about IRAs and other tax advantaged accounts, including Health Savings Accounts and Coverdell Education Savings Accounts, consider joining us for one of our IRA, HSA, or CESA Live Streaming events offered on a variety of topics. For more information call us at 1-800-552-9408.



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