How Much Can You Save in Your HSA 2019 Limits?

Health Savings Accounts (HSAs) are a valuable financial tool that allows you to save money for medical expenses tax-free. Each year, the IRS sets limits on how much you can contribute to your HSA. In 2019, the contribution limits for HSAs are:

• Individuals: $3,500
• Family coverage: $7,000
• Catch-up contributions (age 55 or older): an additional $1,000

These limits determine the maximum amount you can save in your HSA for the 2019 tax year. It's important to stay within these limits to avoid any penalties or tax implications. Here are some key points to keep in mind about HSA limits:

• Contributions can be made by both you and your employer.
• Any contributions made by your employer count towards the annual limit.
• If you have family coverage, you can contribute up to the family coverage limit even if only one family member is on a high deductible health plan.
• Catch-up contributions are available for individuals aged 55 and older to save more for healthcare costs.
• Unused HSA funds roll over from year to year, allowing you to build a substantial savings for future medical expenses.

Health Savings Accounts (HSAs) offer a unique financial advantage, allowing individuals to save for healthcare costs while enjoying tax benefits. For 2019, the IRS established specific contribution limits, enabling smart saving strategies:

• For individuals, the contribution limit stood at $3,500.
• Families could contribute up to $7,000.
• Moreover, individuals aged 55 and over were permitted to make catch-up contributions of an additional $1,000.

These strict limits are designed to help you maximize your healthcare savings potential without facing penalties. Here's what you should remember about your HSA contributions:

• Both employees and employers can contribute to your HSA.
• Employer contributions are included in your annual total.
• If you have family coverage, you qualify for the full family limit, even if only one person is enrolled in a high-deductible health plan.
• Catch-up contributions are an excellent way for older savers to enhance their healthcare cushions.
• Remember, any funds left in your HSA will roll over year after year, allowing you to cultivate a significant healthcare nest egg.