2025 2026 HSA Contribution Limits and HDHP Qualification

The contribution limits for varied tax-advantaged accounts for the next 12 months are normally introduced in October, apart from the HSA, which comes out in April or Could. The contribution limits are adjusted for inflation every year, topic to rounding guidelines.

You may solely contribute to an HSA if you happen to’re coated by a Excessive Deductible Well being Plan (HDHP) with no different protection. You should use the cash already within the HSA for certified medical bills no matter what insurance coverage you at present have.

HSA Contribution Limits

Supply: IRS Rev. Proc. 2024-25, creator’s calculation.

Employer contributions are included in these limits.

The household protection numbers are double the person protection numbers in some years nevertheless it isn’t at all times the case yearly. As a result of the person protection restrict and the household protection restrict are each rounded to the closest $50, the household protection restrict may be barely extra or barely lower than double the person protection restrict when one quantity rounds up and the opposite quantity rounds down.

Age 55 Catch-Up Contribution

As in 401k and IRA contributions, you’re allowed to contribute further if you’re above a sure age. If you’re age 55 or older by the tip of the 12 months (not age 50 as in 401k and IRA contributions), you may contribute an further $1,000 to your HSA. If you’re married, and each of you’re age 55, every of you may contribute an extra $1,000 to your respective HSA.

Nevertheless, as a result of an HSA is in a single particular person’s title, identical to an IRA — there isn’t any joint HSA even when you might have household protection — solely the individual age 55 or older can contribute the extra $1,000 in his or her personal title. If solely the husband is 55 or older and the spouse contributes the complete household contribution restrict to the HSA in her title, the husband has to open a separate account in his title for the extra $1,000. If each husband and spouse are age 55 or older, they should have two HSA accounts in separate names in the event that they wish to contribute the utmost. There’s no technique to hit the mixed most with just one account.

The $1,000 further contribution restrict is mounted by legislation. It’s not adjusted for inflation.

Two Plans Or Mid-Yr Modifications

The boundaries are extra sophisticated if you’re married and the 2 of you’re on completely different well being plans. It’s additionally extra sophisticated when your medical health insurance adjustments mid-year. The insurance coverage change could possibly be as a consequence of a job change, marriage or divorce, enrolling in Medicare, the delivery of a kid, and so forth.

For these conditions, please learn HSA Contribution Restrict For Two Plans Or Mid-Yr Modifications.

HDHP Qualification

The IRS additionally defines what qualifies as an HDHP. For 2025, an HDHP with particular person protection should have at the very least $1,650 in annual in-network deductible and not more than $8,300 in annual out-of-pocket bills. For household protection, the numbers are a minimal of $3,300 in annual deductible and not more than $16,600 in annual out-of-pocket bills.

For 2026, an HDHP with particular person protection should have at the very least $1,700 in annual deductible and not more than $8,500 in annual out-of-pocket bills. For household protection, the numbers are a minimal of $3,400 in annual deductible and not more than $17,000 in annual out-of-pocket bills.

Please notice the deductible quantity is a minimal whereas the out-of-pocket quantity is a most. The utmost out-of-pocket restrict solely applies to the in-network quantity. If the in-network out-of-pocket restrict of your insurance coverage coverage is just too excessive, it doesn’t qualify as an HSA-eligible coverage.

As well as, simply having the minimal deductible and the utmost out-of-pocket isn’t ample to make a plan qualify as HSA eligible. The plan should additionally meet different standards. See Not All Excessive Deductible Plans Are HSA Eligible.

Supply: IRS Rev. Proc. 2024-25, creator’s calculation.

Contribute From Payroll

When you’ve got a Excessive Deductible Well being Plan (HDHP) by means of your employer, your employer might already arrange a linked HSA for you at a particular supplier. Your employer could also be contributing an quantity in your behalf there. You save Social Safety and Medicare taxes whenever you contribute to the HSA by means of payroll. Your employer could also be paying the charges for you on that HSA.

If you contribute to an HSA outdoors an employer, you declare the tax deduction in your tax return much like whenever you contribute to a Conventional IRA. In case you use tax software program, remember to reply the questions on HSA contributions. The tax deduction reveals up on Kind 8889 line 13 and Schedule 1 line 13.

Non-Dependent Grownup Youngsters

In case your HDHP additionally covers an grownup baby who’s not claimed as a dependent in your tax return, every non-dependent grownup baby coated by the plan can even contribute to a separate HSA of their title on the household protection degree once they don’t produce other non-HDHP protection. It’s because they meet the eligibility:

(a) Lined by an HDHP with no different protection; and
(b) The HDHP coverage they’ve covers multiple individual.

Every non-dependent grownup baby can open a separate HSA on their very own with an HSA supplier.

Finest HSA Suppliers

In case you get the HSA-eligible excessive deductible plan by means of an employer, your employer normally has a chosen HSA supplier for contributing through payroll deduction. It’s finest to make use of that one as a result of your contributions through payroll deduction are normally exempt from Social Safety and Medicare taxes. If you need higher funding choices, you may switch or roll over the HSA cash out of your employer’s designated supplier to a supplier of your selection afterward. See How To Rollover an HSA On Your Personal and Keep away from Trustee Switch Price.

If you’re not going by means of an employer, or if you happen to’d wish to contribute by yourself, it’s also possible to open an HSA with a supplier of your selection. For the most effective HSA suppliers with low charges and good funding choices, see Finest HSA Supplier for Investing HSA Cash.