Americans continue to embrace Health Savings Accounts (HSAs). According to AHIP, high-deductible health plan and health savings account enrollment reached 21 million members in 2017 and is expected to continue to grow.
The appeal is that contributions to HSAs are made on a pre-tax basis, and withdrawals are not taxed as long as they are used to pay for qualifying health expenses. Additionally, the HSA belongs to the enrollee, and any leftover funds not used for qualifying medical expenses remain in the account and continue to grow, tax free. The HSA is only available to those enrolled in a High Deductible Health Plan (HDHP).
2019 HSA Contribution Limits are as follows:
Individual: $3,500 ($50 increase over 2018)
Family: $7,000 ($100 increase over 2018)
Catch-up contributions for workers over age 55 will remain at $1,000.
2019 HDHP definition:
A plan with at least a $1,350 deductible for individuals and $2,700 deductible for family. This is the same as the current 2018 amounts.