2025 2026 HSA Contribution Limits and HDHP Qualification

The contribution limits for numerous tax-advantaged accounts for the next yr are often introduced in October, apart from the HSA, which comes out in April or Could. The contribution limits are adjusted for inflation annually, topic to rounding guidelines.

You may solely contribute to an HSA for those who’re lined by a Excessive Deductible Well being Plan (HDHP) with no different protection. You need to use the cash already within the HSA for certified medical bills no matter what insurance coverage you at the moment 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 but it surely isn’t all the time 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 could 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 might be allowed to contribute additional in case you are above a sure age. In case you are age 55 or older by the tip of the yr (not age 50 as in 401k and IRA contributions), you possibly can contribute an further $1,000 to your HSA. In case you are married, and each of you might be age 55, every of you possibly can contribute an extra $1,000 to your respective HSA.

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

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

Two Plans Or Mid-Yr Modifications

The boundaries are extra difficult if you might be married and the 2 of you might be on totally different well being plans. It’s additionally extra difficult when your medical health insurance adjustments mid-year. The insurance coverage change may very well be as a result of a job change, marriage or divorce, enrolling in Medicare, the start 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 will need to have a minimum of $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 will need to have a minimum of $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 be aware 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 enough 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

In case you have 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.

Whenever you contribute to an HSA exterior 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 exhibits 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 lined by the plan may also contribute to a separate HSA of their identify on the household protection degree after they don’t produce other non-HDHP protection. It’s because they meet the eligibility:

(a) Coated by an HDHP with no different protection; and
(b) The HDHP coverage they’ve covers a couple of particular person.

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

Greatest HSA Suppliers

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

In case you are not going by means of an employer, or for those who’d prefer to contribute by yourself, you can even open an HSA with a supplier of your alternative. For the very best HSA suppliers with low charges and good funding choices, see Greatest HSA Supplier for Investing HSA Cash.