HSA Limits for 2019: Understanding Contribution Limits and More

If you're considering opening or have an HSA (Health Savings Account), understanding the 2019 limits is crucial. For individuals with self-only coverage, the limit was set at $3,500, and for those with family coverage, the limit was $7,000. These limits encompass both employer and employee contributions, but it's important to note that catch-up contributions for those aged 55 and older are not included in these limits.

There are several benefits to maximizing your HSA contributions within these limits. Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. Additionally, any unused funds roll over year after year, unlike FSA (Flexible Spending Account), making HSAs a valuable long-term savings tool.

It's essential to stay informed about the HSA limits, as they can change annually. For 2019, the out-of-pocket maximum for high-deductible health plans linked to HSAs was $6,750 for individuals and $13,500 for families. Keeping track of these limits ensures you make the most of your HSA benefits and avoid any penalties for over-contributions.

Understanding the intricacies of Health Savings Accounts (HSAs) is vital for effective management of your healthcare expenses. For 2019, the IRS set the HSA contribution limits at $3,500 for individuals and $7,000 for families, allowing you to save significantly for medical costs.