HSAs in 2026: Key Changes, Limits, and Eligibility Updates

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Health Savings Accounts (HSAs) continue to evolve as healthcare costs and IRS regulations change.

In 2026, new contribution limits and updated eligibility rules will shape how individuals and employers manage healthcare savings.

The IRS set the 2026 HSA contribution limits at $4,400 for self-only coverage and $8,750 for family coverage, with a $1,000 catch-up contribution for those 55 and older according to Fidelity.

These adjustments reflect inflation and aim to help more people offset rising medical expenses.

The IRS also raised the requirements for high-deductible health plans (HDHPs), which determine who can contribute to an HSA.

Minimum deductibles increase to $1,700 for individuals and $3,400 for families, while maximum out-of-pocket limits rise to $8,500 and $17,000, respectively, as detailed in Rev. Proc. 2025-19.

These updates affect how much people can save tax-free and how they plan for healthcare spending throughout the year.

Expanded eligibility rules under new legislation will allow more people, including some with ACA marketplace plans, to open HSAs starting in 2026.

Key Takeaways

• 2026 HSA limits and HDHP requirements rise to match inflation.
• Expanded eligibility allows more individuals to benefit from HSAs.
• Employers and individuals should review contribution strategies for 2026.

What’s New for HSAs in 2026

The IRS has announced updated contribution limits and eligibility rules for health savings accounts (HSAs) in 2026, reflecting both inflation adjustments and legislative changes.

These updates expand who can participate, enhance telehealth access, and clarify how certain healthcare arrangements interact with HSAs.

Legislative Changes Impacting HSAs

The IRS increased the 2026 HSA contribution limits to $4,400 for self-only coverage and $8,750 for family coverage, up from 2025 levels.

These adjustments align with inflation and rising healthcare costs, helping individuals and families save more for medical expenses.

Details on these changes are outlined in IRS guidance for 2026 HSA and HDHP limits.

The One Big Beautiful Bill Act (OBBBA), enacted in mid-2025, introduced structural updates to HSAs.

It expanded eligibility to include individuals enrolled in ACA Bronze-tier or catastrophic plans, a significant shift from the previous requirement of high-deductible health plan (HDHP) coverage.

This change broadens access to tax-advantaged healthcare savings.

Employers and benefits administrators now have more flexibility to design plans that integrate HSA features with modern healthcare options.

This includes coordination with telehealth and direct primary care arrangements.

Overview of OBBBA Provisions

The OBBBA made several targeted adjustments to enhance HSA flexibility and usability.

According to Boone Insurance Associates, the law allows HSAs to reimburse up to $150 per month for individuals or $300 per month for families for Direct Primary Care (DPC) memberships.

This provision supports preventive and routine care without undermining HSA eligibility.

The act also clarified that HDHPs can integrate certain pre-deductible benefits without violating HSA rules.

This includes telehealth and primary care arrangements that previously risked disqualifying participants.

Employers are encouraged to review plan documents and update benefits communications to reflect these expanded options.

Permanent Telehealth Exemption

The temporary telehealth flexibility first introduced during the COVID-19 pandemic has been made permanent for HSA-compatible high-deductible health plans.

Under this rule, plans may cover first-dollar telehealth services before the deductible without affecting HSA eligibility.

The update was confirmed in IRS and benefits industry releases.

This adjustment ensures continued access to virtual care, improving convenience and cost-efficiency for participants.

Employers can now confidently include telehealth in plan design without risking compliance issues.

The permanence of this exemption reflects the growing role of remote healthcare and its integration into mainstream plan offerings.

It also supports consistent access to care for employees in rural or underserved areas.

2026 HSA Contribution Limits

The IRS increased the 2026 contribution limits for health savings accounts (HSAs) to reflect inflation and rising healthcare costs.

These adjustments affect both individuals and families enrolled in high-deductible health plans (HDHPs) and influence how much employees and employers can contribute tax-free.

Annual Contribution Maximums

For 2026, the IRS set the HSA contribution limit at $4,400 for individuals with self-only coverage and $8,750 for families.

This marks a $100 and $200 increase from 2025 levels, respectively, according to PLANSPONSOR.

To remain eligible, individuals must be covered under an HDHP.

In 2026, an HDHP must have a minimum deductible of $1,700 for self-only or $3,400 for family coverage.

The maximum out-of-pocket costs cannot exceed $8,500 for self-only or $17,000 for family coverage.

These higher limits give participants more room to save for qualified medical expenses, such as prescriptions, dental care, and vision costs.

Participants continue to benefit from the HSA’s triple tax advantage—pre-tax contributions, tax-free growth, and tax-free withdrawals for eligible expenses.

Catch-Up Contributions

Individuals aged 55 or older can make an additional $1,000 catch-up contribution each year.

This amount remains unchanged for 2026 and applies on top of the standard annual limit.

Catch-up contributions must be made to an HSA in the name of the eligible individual, not jointly with a spouse.

If both spouses are 55 or older, each must have their own HSA to contribute the extra amount.

This provision allows older workers to accelerate savings before retirement, when medical expenses often increase.

Because these contributions are tax-deductible, they can also reduce taxable income and help offset the cost of Medicare premiums or other out-of-pocket healthcare costs in later years.

Employer and Employee Contributions

Both employers and employees can contribute to an HSA, but total combined contributions cannot exceed the IRS annual limit.

For example, if an employer contributes $1,000 to an employee’s HSA, the employee may contribute up to $3,400 more for self-only coverage in 2026.

Employers often fund HSAs as part of a benefits package to encourage participation in HDHPs.

Contributions made by employers are not subject to federal income tax, Social Security, or Medicare taxes.

Employees can adjust their contributions through payroll deductions, spreading deposits evenly throughout the year.

This flexibility helps workers manage cash flow while building tax-advantaged savings for future healthcare costs.

High-Deductible Health Plans and 2026 Requirements

The IRS has updated the 2026 requirements for high-deductible health plans (HDHPs) to reflect cost-of-living adjustments.

These changes affect both the minimum deductible amounts and the maximum limits on out-of-pocket expenses that determine HSA eligibility.

Minimum Deductibles

For calendar year 2026, the IRS set the minimum deductible for HDHPs at $1,650 for self-only coverage and $3,300 for family coverage, as outlined in Rev. Proc. 2025-19.

These figures represent modest increases from 2025 levels.

An HDHP must meet or exceed these thresholds to qualify participants for a Health Savings Account (HSA).

Plans with lower deductibles cannot be paired with HSAs under federal rules.

Employers and individuals should confirm that their plans meet these updated requirements before making or receiving HSA contributions.

Failing to meet the IRS minimums could disqualify contributions and trigger tax penalties.

Out-of-Pocket Maximums

The maximum out-of-pocket limit for 2026 HDHPs is $8,300 for self-only coverage and $16,600 for family coverage, according to Alera Group’s summary. These limits include deductibles, copayments, and coinsurance, but exclude premiums.

Once an enrollee reaches these limits, the plan must cover 100% of further eligible expenses for the rest of the year.

Employers offering HDHPs should verify that their plan designs comply with these ceilings.

Plans exceeding the IRS maximums cannot be considered HSA-qualified, which may affect employee eligibility for tax-advantaged savings.

Expanded HSA Eligibility in 2026

Beginning January 1, 2026, the One Big Beautiful Bill Act (OBBBA) broadens who can open and contribute to Health Savings Accounts (HSAs).

The changes extend eligibility to new plan types, recognize certain direct care models, and expand access for workers outside traditional employment structures.

Marketplace Plan Inclusion

The OBBBA reclassifies Bronze and Catastrophic plans sold through the Affordable Care Act (ACA) Marketplace as qualifying high-deductible health plans (HDHPs).

This means enrollees in these lower-premium plans can now open and fund HSAs for the first time.

Under the updated rules, individuals with these ACA plans can make tax-deductible contributions, enjoy tax-free growth, and use funds for qualified medical expenses.

This change removes a key barrier that previously excluded millions of Marketplace participants from HSA benefits.

According to the White House summary, the expansion aims to align consumer health plan options with tax-advantaged savings opportunities.

It also simplifies plan selection by allowing more Marketplace enrollees to choose HSA-compatible coverage without navigating complex HDHP definitions.

Direct Primary Care Arrangements

The legislation also clarifies that individuals can maintain HSA eligibility while participating in Direct Primary Care (DPC) arrangements, up to specific monthly cost limits.

DPC members can pay physicians directly for routine care without forfeiting their ability to contribute to an HSA.

Under the new rule, individuals may pair an HSA with a DPC membership costing up to $150 per month for individuals or $300 per month for families, as outlined in Forbes’ coverage of the OBBBA.

This adjustment addresses prior uncertainty about whether DPC agreements counted as disqualifying health coverage.

It provides flexibility for patients who prefer direct, subscription-based care while preserving the tax advantages of an HSA.

The inclusion of DPC arrangements also supports broader access to telehealth services, allowing virtual visits to be covered before meeting the deductible.

Impact on Part-Time and Gig Workers

Expanded eligibility significantly benefits part-time, freelance, and gig economy workers who often purchase individual coverage through ACA Marketplaces.

Many of these workers previously lacked access to employer-sponsored HDHPs, leaving them without the option to save pre-tax for medical expenses.

Starting in 2026, these individuals can select HSA-qualified Bronze or Catastrophic plans and contribute to HSAs on their own.

This change helps them manage unpredictable income and healthcare costs more efficiently.

Employers using contract labor may also see indirect benefits.

Contractors with HSAs can better handle out-of-pocket expenses, reducing financial strain that can affect work continuity.

Analysts at Contempo HCM note that the reform modernizes HSA policy to reflect today’s flexible workforce.

It aligns tax-advantaged health savings with the realities of independent and part-time employment.

Family Coverage and HSA Rules

Families using health savings accounts in 2026 will see modest increases in contribution limits and deductible thresholds.

These adjustments affect how much they can save tax-free and what qualifies as a high-deductible health plan under federal rules.

Family Contribution Limits

For 2026, the IRS raised the annual HSA contribution limit for family coverage to $8,750, up from $8,550 in 2025.

The limit for self-only coverage is $4,400.

Individuals aged 55 or older who are not enrolled in Medicare can add a $1,000 catch-up contribution, which remains unchanged.

These figures are outlined in IRS guidance for 2026 HSA limits.

Both employer and employee contributions count toward these totals.

Families can divide contributions between spouses’ HSAs, but the combined amount cannot exceed the annual family limit.

HSA contributions remain tax-deductible, tax-deferred, and tax-free when used for qualified medical expenses.

This triple tax advantage continues to make HSAs a practical savings tool for long-term healthcare costs.

Embedded Individual Deductibles

High-deductible health plans (HDHPs) that qualify for HSAs often include embedded individual deductibles within family coverage.

In 2026, the minimum annual deductible for a family HDHP is $3,400, while the self-only minimum is $1,700, according to IRS rules for HDHPs.

An embedded deductible ensures that no single family member must pay more than the individual deductible before the plan begins sharing costs.

This feature protects individuals from paying the full family deductible for their own care.

For example, if one spouse meets the $1,700 individual deductible under a family plan, the insurer begins covering that person’s eligible expenses even if the full family deductible has not been met.

Families should review plan documents carefully to confirm whether deductibles are aggregate (shared across all members) or embedded, as this distinction affects out-of-pocket exposure and HSA contribution planning.

ACA and CMS Updates Affecting HSAs

Recent policy changes under the Affordable Care Act (ACA) and new rules from the Centers for Medicare & Medicaid Services (CMS) shape how Health Savings Accounts (HSAs) interact with ACA Marketplace plans in 2026.

These updates affect eligibility, cost-sharing, and plan design standards that influence both consumers and employers.

ACA Out-of-Pocket Maximums

Beginning in 2026, ACA Marketplace plans will reflect adjusted out-of-pocket maximums that align with federal inflation metrics.

These limits define the most a consumer pays in a year for covered services before insurance covers 100% of costs.

The ACA caps these amounts to maintain affordability.

For 2026, the ceiling is expected to rise modestly to account for medical inflation, ensuring consistency with IRS rules for high-deductible health plans (HDHPs) tied to HSAs.

This alignment allows more plans—especially Bronze and Catastrophic tiers—to qualify as HSA-eligible.

According to Big Beautiful Bill HSA Changes for ACA Bronze Holders, expanded eligibility will let millions of ACA enrollees contribute to HSAs for the first time.

These adjustments improve plan flexibility and help individuals manage healthcare costs through tax-advantaged savings.

CMS Guidance for 2026

The final 2026 CMS Payment Notice introduces operational and compliance updates for insurers and Marketplace administrators. CMS aims to improve transparency, strengthen consumer protections, and streamline plan selection through standardized plan options.

CMS also finalized rules that make it easier for consumers to maintain coverage if small premium balances remain unpaid. The policy allows issuers to set fixed-dollar or percentage-based thresholds, reducing unnecessary terminations for minor payment gaps, as described in the HHS Notice of Benefit and Payment Parameters for 2026 Final Rule.

These updates indirectly support HSA use by stabilizing enrollment and improving plan consistency. Standardized plan structures and simplified cost-sharing rules help consumers better identify HSA-compatible options.

CMS also continues to refine its risk adjustment and quality reporting programs to ensure fair pricing and better data transparency.

Employer Considerations for 2026

Employers face new administrative and communication responsibilities as 2026 brings expanded Health Savings Account (HSA) eligibility and updated High-Deductible Health Plan (HDHP) rules. Clear documentation and proactive employee education will help organizations stay compliant and maintain engagement with evolving benefit options.

Plan Document Updates

Employers should review and revise plan documents, summary plan descriptions, and enrollment materials to reflect 2026 HSA and HDHP updates.

The One Big Beautiful Bill Act (OBBBA) expands HSA eligibility to include employees enrolled in ACA Bronze-tier or catastrophic plans, as explained in this overview.

Plan language must clearly define newly eligible participants and specify how telehealth and Direct Primary Care (DPC) coverage integrate with deductible requirements.

Employers should confirm that telehealth services remain covered before the deductible without disqualifying HSA contributions.

Updating contribution limits and confirming that payroll systems align with the IRS 2026 HSA limits—outlined in WTW’s employer guidance—will prevent compliance errors.

Employers may also need to coordinate with third-party administrators to ensure that forms, eligibility checks, and reimbursement processes match the new federal standards.

Communication Strategies

Clear, consistent communication helps employees understand the expanded opportunities and responsibilities tied to 2026 HSA rules.

Employers should prepare educational materials that explain how ACA plan participants can now contribute to HSAs and how HDHP requirements may differ from prior years.

A short comparison table can help:

Employers can use webinars, internal FAQs, and digital enrollment tools to reinforce these updates.

Regular reminders during open enrollment and payroll onboarding ensure employees make informed choices about contributions and qualified expenses.

Partnering with benefits advisors or brokers can further enhance accuracy and help employees maximize the tax advantages of HSAs while maintaining compliance with HDHP standards.

Tax Advantages and Compliance

Health Savings Accounts (HSAs) in 2026 continue to offer strong tax incentives and require careful adherence to IRS rules.

The updated contribution limits and expanded eligibility under the One Big Beautiful Bill Act (OBBBA) make understanding both tax benefits and compliance obligations essential for employees and employers.

Triple Tax Benefits

HSAs provide a three-tiered tax advantage that makes them one of the most efficient healthcare savings tools available.

1. Pre-Tax Contributions: Money deposited into an HSA reduces taxable income for the year. Employees and employers can both contribute, within IRS-set annual limits.
2. Tax-Free Growth: Earnings, such as interest or investment returns, accumulate without taxation.
3. Tax-Free Withdrawals: Funds used for qualified medical expenses—including dental, vision, and many preventive services—remain untaxed.

In 2026, the IRS has confirmed higher contribution limits for both individuals and families, aligning with inflation adjustments and healthcare cost trends.

These updates enhance the long-term savings potential of HSAs, allowing participants to build reserves for future expenses.

Because account holders retain ownership, unused funds roll over year to year.

This portability distinguishes HSAs from flexible spending arrangements and supports retirement planning through continued tax advantages.

IRS Compliance and Reporting

The IRS enforces specific rules for maintaining HSA eligibility and tax-free status.

Only individuals enrolled in a high deductible health plan (HDHP) or a qualifying ACA Bronze-tier plan under the new OBBBA provisions may contribute.

Employers must ensure contributions align with IRS limits and that plan documents reflect current regulations.

Annual filings, such as Form 8889 for individuals and Form 5500 for certain employer-sponsored plans, help verify compliance.

The IRS also sets reporting standards for RxDC (Prescription Drug Data Collection) and other benefit-related disclosures.

Employers should review these requirements to avoid penalties and ensure accurate submissions.

For detailed updates on 2026 limits and compliance deadlines, see IRS HSA and HDHP guidance.

Planning Strategies for Individuals

Individuals can strengthen their financial health by taking full advantage of new HSA contribution limits and expanded eligibility rules in 2026.

Careful planning can help them reduce taxable income, manage healthcare costs efficiently, and grow long-term savings through tax-advantaged investments.

Maximizing HSA Contributions

The IRS will raise the annual HSA contribution limits in 2026 to $4,400 for individuals and $8,750 for families, as outlined in IRS contribution updates.

These higher thresholds allow account holders to shelter more income from taxes while preparing for medical expenses.

Those with employer-sponsored HSAs should confirm whether their company contributes, since employer deposits count toward the annual cap.

Setting up automatic payroll deductions ensures consistent funding throughout the year.

Individuals enrolled in high-deductible bronze or catastrophic plans under the ACA Marketplace will also gain eligibility under the One Big Beautiful Bill Act.

This expansion allows millions more to open HSAs and benefit from tax-free growth.

Tip: Contribute early in the year to maximize potential investment gains and maintain liquidity for unexpected medical costs.

Long-Term Savings and Investments

HSAs function as both a healthcare and retirement savings tool.

Funds roll over each year and can be invested in mutual funds or ETFs once the balance exceeds the provider’s minimum.

Over time, tax-free growth can significantly increase available funds for future expenses.

After age 65, withdrawals for nonmedical expenses are taxed like ordinary income but incur no penalty.

This flexibility makes HSAs a valuable complement to retirement accounts such as IRAs or 401(k)s.

Individuals should review investment options within their HSA platform, comparing fees, fund performance, and minimum investment thresholds.

Maintaining a mix of cash for short-term medical needs and investments for long-term growth helps balance safety and return potential.

Historical Trends and Future Outlook

Health savings accounts (HSAs) continue to evolve as the Internal Revenue Service (IRS) adjusts contribution limits and high-deductible health plan (HDHP) thresholds each year.

These changes reflect inflation trends and policy priorities that influence how individuals and families manage healthcare costs and tax-advantaged savings.

Contribution and Limit Trends

Over the past decade, HSA contribution limits have risen gradually in response to inflation adjustments.

For 2026, the IRS increased the individual contribution limit to $4,400 and the family limit to $8,750, according to First Dollar’s analysis.

These represent modest year-over-year increases of about 2.3%.

The minimum deductible for HDHPs in 2026 will be $1,700 for self-only coverage and $3,400 for family coverage.

The maximum out-of-pocket limits will rise to $8,500 and $17,000, respectively.

This pattern aligns with inflation-based adjustments the IRS makes annually.

A brief comparison of HSA limits:

These incremental increases signal the IRS’s continued use of cost-of-living calculations to preserve HSA value over time while maintaining affordability standards for HDHPs.

Expected Legislative Developments

Lawmakers have explored expanding HSA eligibility and flexibility.

The One Big Beautiful Bill Act, discussed by Forbes, could extend HSA access to more types of health plans beginning in 2026.

This expansion would allow more workers and families to benefit from tax-advantaged healthcare savings.

Future proposals may also address catch-up contributions and coordination with other benefits, such as flexible spending accounts.

While the statutory catch-up limit remains unchanged since 2009, analysts at Mercer note that policymakers could revisit this area to encourage greater retirement and healthcare savings integration.

Frequently Asked Questions

Health Savings Account (HSA) limits and related tax rules for 2026 reflect inflation adjustments announced by the IRS.

These updates affect how much individuals, families, and employers can contribute, as well as the continued tax advantages of HSAs and related Health Reimbursement Arrangements (HRAs).

What are the HSA contribution limits for individuals and families in 2026?

For 2026, the IRS set the HSA contribution limit at $4,300 for self-only coverage and $8,550 for family coverage, according to IRS guidance in Rev. Proc. 2025-19.

These figures represent modest increases from 2025 to reflect inflation adjustments.

Can individuals over 55 contribute additional amounts to their HSA in 2026?

Yes. Individuals aged 55 or older may continue to make a catch-up contribution of up to $1,000.

This amount remains unchanged for 2026 and must be contributed separately by each eligible person with an HSA.

Are there any expected tax changes affecting HSAs in 2026?

No major tax law changes have been announced that would alter the fundamental tax treatment of HSAs in 2026.

Contributions, investment growth, and qualified withdrawals remain tax-advantaged under current federal law, as confirmed by the IRS 2026 HSA update.

Is the tax deductibility of HSA contributions still applicable in 2026?

Yes. HSA contributions made by individuals are tax-deductible, and contributions made through payroll deductions are excluded from taxable income.

This rule continues unchanged for 2026.

How do employer contributions impact an individual’s HSA contribution limit?

Employer contributions count toward the annual maximum limit.

For example, if an employer contributes $1,000 to an employee’s HSA, the employee may contribute only the remaining amount up to the applicable limit.

This coordination ensures total contributions do not exceed the IRS maximum.

What are the HRA contribution maximums for the year 2026?

The maximum annual employer contribution for an excepted-benefit HRA increases to $2,200 in 2026.

This adjustment aligns with inflation.