Contributions to a Health Savings Account (HSA) are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent and are adjusted annually for inflation. For 2019, the annual inflation-adjusted contribution limit for a Health Savings Account (HSA) increases to $$3,500 for individuals with self-only coverage (up $50 from 2018) and $7,000 for family coverage (up $100 from 2018).
To take advantage of an HSA, individuals must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance with the exception of insurance for accidents, disability, dental care, vision care, or long-term care. Medical expenses such as deductibles, copayments, and other amounts (but excluding premiums) must not be reimbursable by insurance or other sources and do not qualify for the medical expense deduction on a federal income tax return.
For calendar year 2019, a qualifying HDHP must have a deductible of at least $1,350 for self-only coverage or $2,700 for family coverage (same as 2018) and must limit annual out-of-pocket expenses of the beneficiary to $6,750 for self-only coverage (up $100 from 2018) and $13,500 for family coverage (up $13,300 from 2018). As with contribution limits, deductibles and out-of-pocket expenses are adjusted for inflation annually.
Please call if you have any questions about Health Savings Accounts.