October 3, 2022

Volume XII, Number 276

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September 30, 2022

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IRS Announces Limits for Health Savings Accounts and High-Deductible Health Plans for 2019

Summary

On May 10, 2018, the IRS announced cost-of-living adjustments to the applicable dollar limits for health savings accounts and high-deductible health plans for 2019. Many of the limits will change for 2019.

In Depth

Recently the Internal Revenue Service (IRS) announced (see Revenue Procedure 2018-30) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2019. As a result of the 2017 tax reform legislation, the inflation indexing measure was changed from using the consumer price index to chained consumer price index. While this new approach resulted in some changed limits after the initial announcement and subsequent relief for 2018, it should not similarly affect the limits for 2019 and later years.

The table below compares the applicable dollar limits for HSAs and HDHPs for 2018 and 2019.

HEALTH AND WELFARE PLAN LIMITS

2018

2019

HDHP – Maximum annual out-of-pocket limit (excluding premiums):

 Self-only coverage

$6,650

$6,750

 Family coverage

$13,300

$13,500

 HDHP – Minimum annual deductible:

 Self-only coverage

$1,350

$1,350

 Family coverage

$2,700

$2,700

 HSA – Annual contribution limit:

 Self-only coverage

$3,450

$3,500

 Family coverage

$6,900

$7,000

 Catch-up contributions (age 55 or older)

$1,000

$1,000

Plan sponsors should update payroll and plan administration systems for the 2019 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, like open enrollment and communication materials, plan documents and summary plan descriptions.

© 2022 McDermott Will & EmeryNational Law Review, Volume VIII, Number 135
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About this Author

Judith Wethall, McDermott Law Firm, Chicago, Labor and Employment Law Attorney
Partner

Judith Wethall focuses her practice on employee benefits, specifically health and welfare programs. She counsels employers, plan administrators, insurers and consultants on a wide range of ERISA compliance issues. Judith's clients include sole proprietors to Fortune 100 companies and cover a variety of industries including health care, technology, manufacturing, insurance and financial.

Judith has extensive experience advising clients on health care law reform; wellness programs; Medicare secondary payor rules; fiduciary compliance; disability...

312-984-7577
Jacob Mattinson Employee Benefits Attorney
Associate

Jacob M. Mattinson focuses his practice on employee benefits and matters related to 401(k), 403(b), pension, executive compensation, health care reform, and cafeteria and welfare plans.

Jacob assists clients in drafting employee benefit plan documents and amendments. He represents clients in matters before the Internal Revenue Service (IRS), US Department of Labor (DOL) and Pension Benefit Guaranty Corporation with respect to plan qualification issues. He also counsels privately and publicly held corporations and tax-exempt entities on a variety of benefits and Employee Retirement...

312-984-3263
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