2019 Contribution Limits for Health Savings Account (HSA) and Health Care Flexible Spending Account (FSA)
Understanding the contribution limits for Health Savings Accounts (HSAs) and Health Care Flexible Spending Accounts (FSAs) is crucial for individuals seeking to maximize their healthcare savings. The Internal Revenue Service (IRS) announced the updated limits for 2019, which differ based on the type of coverage (individual or family) and the specific account type.
HSA Contribution Limits for 2019
The IRS has officially issued the 2019 inflation-adjusted amounts for health savings accounts (HSAs), as stated in Revenue Procedure 2018-30. For individuals with self-only coverage under a High-Deductible Health Plan (HDHP), the annual limit for deductions in 2019 is $3,500. For those with family coverage, the limit is $7,000. This represents an increase from the previous year's limits. Notably, individuals aged 55 or older may also make additional ‘catch-up contributions’ of $1,000 in 2019.
HDHP Minimum Deductibles for 2019
An HDHP is defined by the IRS as a health plan where the annual deductible for self-only coverage is at least $1,350, and for family coverage, it is at least $2,700. These minimum deductibles serve as a baseline for qualifying for an HSA.
HDHP Maximum Out-of-Pocket Expenses for 2019
The maximum out-of-pocket expenses under an HDHP for 2019, including deductibles, coinsurance, and copayments but excluding premiums, are $6,750 for self-only coverage and $13,500 for family coverage. These maximums ensure that individuals do not face overwhelming financial burdens while maintaining access to necessary healthcare services.
FSA Contribution Limits for 2019
Another important healthcare savings tool is the Flexible Spending Account (FSA). The IRS has announced that the 2019 FSA contribution cap is set at $2,700. This limit applies to FSAs that cover medical and dental expenses.
Understanding the Bag Limit for 2019
The term "bag limit" in this context refers to the annual contribution limit for an HSA. For individuals with self-only coverage, the bag limit for 2019 is $3,500, while for family coverage, it is $7,000. If you are 55 years of age or older, you can make additional ‘catch-up contributions’ of $1,000 in 2019 to increase your savings.
Finding Detailed Information on HSA and FSA Limits
For comprehensive details on the 2019 HSA and FSA contribution limits, you can consult your plan administrator or visit the official IRS website. The maximum HSA Contributions for 2018 and 2019 are outlined for each situation, providing a clear and detailed overview of the limits and options available.
Key Points:
HSA contribution limit for self-only coverage: $3,500 (2019); Family coverage: $7,000 (2019) Additional catch-up contributions for individuals aged 55 and over: $1,000 (2019) HDHP minimum deductibles: $1,350 for self-only coverage; $2,700 for family coverage (2019) HSA maximum out-of-pocket expenses for self-only: $6,750 (2019); Family: $13,500 (2019) FSA contribution cap for 2019: $2,700Staying informed about these limits can help you make better financial decisions and save more for your healthcare needs. Make sure to review the provided limits and consult your healthcare provider for personalized advice.