IRS readjusts HSA contribution limit and announces 2019 limits


Piggy bank

In March of this year, the IRS adjusted the 2018 HSA contribution limit for individuals enrolled in family coverage down $50 from $6,900 to $6,850. A little over a month later, the IRS reconsidered the retroactive limit adjustment to the inflation-based calculation and allowed the $6,900 limit to remain for the entire 2018 tax year. The IRS also offered guidance (Rev. Proc 2018-27) for individuals who contributed above the limit and received a distribution. But the correction opportunity does not apply to pre-tax employer contributions for employees or employee contributions through a cafeteria plan.

Employers should (again) confirm that they are using the correct contribution limits for HSAs and other welfare plans. Adjusting the HSA limit allows employees to take maximum advantage of the tax savings or corrections, if necessary, under the former lower rate.

As a reminder, relevant plan limits for 2018 are below. Additionally, on May 10, 2018, the IRS announced the inflation-adjusted limits for 2019, which are also included below:

HSA Limits

Self-Only Coverage

Family Coverage

Annual contribution limit

2018: $3,450
2019: $3,500

2018: $6,900
2019: $7,000

Catch-up contribution (age 55 and older)

(same for 2018 and 2019)

HDHP minimum deductible requirements

(same for 2018 and 2019)

(same for 2018 and 2019)

HDHP out-of-pocket maximum

2018: $6,650
2019: $6,750

2018: $13,300
2019: $13,500

Health FSA limit on pre-tax contributions


Dependent care FSA tax exclusion

married filing separately

married filing jointly

Media Contact

Subscribe to Receive Updates
Jump to Page

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.