The Internal Revenue Service (IRS) on Thursday announced a moderate increase to its health savings account (HSA) contribution limits for 2026.
According to the federal agency, individuals with self-only coverage under a high deductible health plan (HDHP) will have an annual limitation of $4,400, a growth of $100 compared to last year. Those with family coverage under a (HDHP) will see an annual limit of $8,750, or an increase of $200 compared to 2025 limits.
Individuals who contribute to an HSA must first be enrolled in an HDHP. An HSA allows participants who are under high deductibles to allocate more efficiently towards healthcare costs.
For calendar-year 2026, a HDHP is defined by the IRS as a “health plans with an annual deductible that is not less than $1,700 for self-only coverage (a rise from $1,650 in 2025) or $3,400 for family coverage.” Out-of-pocket expenses for HDHPs, such as deductibles, co-payments, and other amounts, cannot exceed $8,500 for self-only coverage or $17,000 for family coverage.
For plan years beginning in 2026, the maximum amount individuals can make to a health reimbursement account (HRA) is $2,200.
These limits only apply to in-network expenses and may differ for out-of-network costs.
While the feature could help individuals and families pay down healthcare expenses, it’s also been encouraged as a retirement savings strategy by some. A 2023 Health Savings Account Survey sponsored by HSA Bank found that over a third of employers had marketed the tools as a retirement savings strategy in 2022, up from 27% in years prior.
Individuals who use the tool for both strategies could benefit from more education, especially as the cost of retirement and health care rise, said HSA Bank at the time. “The cost of retiring continues to grow as health care becomes more expensive and it’s critical that employers incorporate HSA investment education into retirement and financial planning programs,” said Ann Brisk, senior director of innovation and strategy at HSA Bank.
SEE ALSO:
Broadridge 360: Medicare & HSAs — the Perfect Pair in Retirement Planning
HSAs are Evolving: Here’s What to Know Beyond the Basics
HSAs Have ‘Mixed Effects’ on Healthcare Service Usage
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.