What 2019 has in Store for IRA and HSAs


Nancy Denstad

Nancy Denstad, Deposit Account Services Manager

Do you offer your employees Individual Retirement Account (IRA) or Health Savings Account (HSA) options? These accounts can be extremely beneficial when saving for the future. Make sure to remind your employees about their options and the new maximum contribution limits for 2019. Nancy Denstad, our Certified IRA Services Professional (CISP) and a Certified Health Savings Professional (CHSP), outlines this year’s new limits.


For IRA’s, the 2019 limit is $6,000. This limit has increased from 2018. Anyone 50 years of age or more has the option of contributing an additional $1,000.


HSA contribution 2019 limits depend on your employee’s type of insurance coverage:

  • Individual contribution limit – $3,500
  • Family contribution limit – $7,000

An additional $1,000 catch-up contribution is an option for those 55 or more.

“It might be a good idea to, if at all possible, contribute the maximum to an IRA or HSA,” Nancy said. “It’s an opportunity to invest in your future and give yourself some peace of mind.”

Contributing to these kinds of accounts helps your employees grow their money and secure funds for retirement. An HSA can set aside funds for health expenses before and after retirement. While you cannot make contributions to an HSA after you’re enrolled in Medicare, distributions are not limited to health expenses after you are 65 years old. You can even use HSA funds for health insurance premiums at age 65 or older as well.

You can find detailed information on IRAs and HSAs at irs.gov – look for Publication 969.

Of course, it is important to remember that depending on your specific account, there may be additional details to consider when planning your saving contributions. You should consult your tax advisor regarding your own saving plan with these kinds of accounts.

Would setting up a company IRA or HSA program be beneficial?

If your company doesn’t offer these kinds of savings options, contact one of our Commercial Bankers or Customer Service Representatives to discuss setting up one of these programs for your employees.

Or, your employees may be able to open their own IRA or HSA for 2019 at Merchants Bank. They can call 1-800-944-6285 and ask to speak to the Customer Service Representative at your local Merchants Bank branch.