IRS increases HSA contribution limits for 2026

From Yahoo Finance: 2025-05-12 11:18:00

The IRS has raised the maximum annual contribution limit to health savings accounts (HSAs) for 2026. Individual employees can now contribute up to $4,400, an increase from 2025’s limit of $4,300. For those with family coverage, the limit has been raised to $8,750 from $8,550 this year.

Additionally, the IRS adjusted the regulatory definition of high-deductible health plans (HDHPs) for 2026, setting annual deductibles at $1,700 for self-only coverage and $3,400 for family coverage. The out-of-pocket expense limits for the year are $8,500 for individuals and $17,000 for families.

Employers are exploring plan design and network strategies to reduce healthcare costs, with only 20% promoting account-based health plans or HDHPs. Research shows that enrollment in HSA-eligible HDHPs plateaued between 2020 and 2023, with lower satisfaction among enrollees compared to other consumers.

A declining trend in HDHP adoption is attributed to increased cost sensitivity among employees and a saturation point in cost sharing. Employers are urged to focus on developing digitally enabled products to enhance the member experience and improve satisfaction among plan enrollees.



Read more at Yahoo Finance: IRS sets new HSA caps for 2026