Employees will be able to save an additional $100 annually in their health savings accounts (HSAs) next year.
The annual limit on HSA contributions for self-only coverage in 2026 will be $4,400, a 2.3% increase from the $4,300 limit in 2025, the IRS announced. For family coverage, the HSA contribution limit will jump to $8,750 in 2026, up 2.4% from $8,550 in 2025.
The figures met estimates from analysts. Although the jump is welcome news for employees, the past two years have seen smaller rises in contribution limits due to stabilizing inflation.
Meanwhile, for 2026, a high-deductible health plan (HDHP) must have a deductible of at least $1,700 for self-only coverage, up from $1,650 in 2025, or $3,400 for family coverage, up from $3,300 in 2025, the IRS noted. Annual out-of-pocket expense maximums (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $8,500 for self-only coverage in 2026, up from $8,300 in 2025, or $17,000 for family coverage, up from $16,600 in 2025.
The IRS also announced that the excepted-benefit health reimbursement arrangement limit will be $2,200 in 2026, up from $2,150 in 2025. All limits will take effect Jan. 1, 2026.
Many industry experts tout HSAs as a smart way for employees to save for medical expenses, even in retirement, citing their triple tax benefits: Contributions are made pretax, the money in the accounts grows tax-free, and withdrawals for qualified medical expenses are tax-free.
SHRM’s 2024 Employee Benefits Survey found that 60% of employer respondents offer an HSA. Among employers that do offer HSAs, 62% offer contributions to their employees’ accounts. The average individual-only annual contribution is $1,033, according to SHRM, while the average family annual contribution is $1,633.
Overall, employees are contributing more to their HSAs, with data finding that HSA balances were up significantly at the end of 2024 compared to year-end 2023. The average HSA account balance at the end of 2024 was $5,000, up year-over-year from $4,400, according to analysis from Bank of America. In the fourth quarter of 2024, on average, Generation X employees contributed the most to their HSAs — nearly $2,000 — while Millennials were most likely to have saved their HSA funds.
HSA annual limits are released every April or May by the IRS — ahead of other limits such as flexible spending accounts and 401(k) contributions — giving employers and HSA administrators plenty of time to adjust. Employers often promote HSAs and encourage employees to boost their contributions during open enrollment, though it would be a good idea for HR and benefits leaders to start that conversation now.
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