IRS issues HSA contribution limits for 2019

IRS issues HSA contribution limits for 2019
For 2019, the annual limit on deductible contributions will increase for both individuals and for those with family coverage. Individuals with self-only coverage, the deductible contribution limit will increase $50 from 2018 to $3,500. The limit will increase $100 for family coverage, to $7,000.

To be eligible to contribute to an HSA, an individual must participate in an HDHP, which is a health plan with an annual deductible that is not less than a certain limit each year and for which the annual out-of-pocket expenses, including deductibles, co-payments, and other amounts, but excluding premiums, do not exceed a certain limit each year.


You can use HSAs to pay for a variety of medical expenses that may not be covered by your insurance. These include co-pays and co-insurance; some alternative health care treatments, such as acupuncture and chiropractic care; as well as vision care, dental expenses, and even hearing aids. You can also use HSA funds to pay for some insurance premiums , such as long-term care premiums. 


The real allure of HSAs is generally the potential tax benefits because The income used to fund HSAs is tax deductible.


Besides the tax advantages, HSAs are portable. Once you've funded an account, it can follow you to your next job. And unlike flexible spending accounts (FSAs), where you must use the money before the end of the year or lose it, HSA money is yours to keep until you spend it.
HSAs can also function like secondary retirement accounts, allowing you to stock away a bit more in savings. Similar to other investment accounts, money in an HSA can be invested in stocks, bonds, and other securities. We  recommend considering HSAs like other investment accounts: make investments based on your long-term financial goals, risk tolerance, and liquidity needs.
Eligible consumers can deposit money in HSAs, tax-free, until they turn age 65. At that point, they can no longer make deposits, though the balance can still grow through investment earnings. Consumers over age 65 can withdraw as much or as little as they like.
Money that's withdrawn for qualified health care expenses is still tax-free. After age 65 there's another bonus: You can withdraw money to use for non-health care expenses, in which case it's taxed at the account owner's normal income tax rate, with no penalties.
It's similar to an IRA.

Journal of Accountancy