Health savings accounts increased 13% in 2019; IRS updates plan limits

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The Internal Revenue Service has announced new limits for health savings account contributions and high-deductible health plan limits for 2021, with the takeup rate by employers increasing at a double-digit rate, Businessolver posted on its website. The HSA limit for individuals has increased $50 to $3,600 per year, and the HDHP limit for family coverage has increased $100 to $7,200 per year. The increases represent a 1.4% increase over the 2020 limits. The catch-up contribution for those over 55 remains the same at $1,000. Offerings of HSAs and HDHPs continue to gain momentum with employers. HSA assets increased 13% year-over-year in 2019, bringing the total number of HSA accounts to 29.4 million as of January, according to a report by Denevir Group, an HSA investment and research firm.