An employee is eligible to set up an HSA if they satisfy all federal requirements, such as participating in a High Deductible Health Plan (HDHP).
You're responsible for determining an employee's eligibility and annual maximum for HSA contributions. We do not automatically limit or enforce an annual maximum for you, because plans vary widely. The maximum total annual contribution from you and the employee is their HSA plan deductible or the current IRS limit (whichever is lower). Consult your tax advisor, accountant, or insurance provider for more information.
- For individual coverage, the maximum annual HSA contribution is $3,500 for 2019 and $3,450 for 2018.
- For family coverage, the maximum annual HSA contribution is $7,000 for 2019 and $6,900 for 2018.
If the employee was eligible on the first day of the last month of the taxable year (December 1 for most taxpayers), then he is allowed the full annual contribution (plus catch-up contribution, if 55 or older by year end), regardless of the number of months he was eligible during the year.
HSA holders 55 and older can save $4,5000 for an individual for 2019 and $4,450 for 2018 and $8,000 for a family in 2019 and $7,900 for 2018.