IRS unveils new health savings account limits for 2027
Choreograph (Konstantin Yuganov) | Istock | Getty Images The IRS has released the 2027 contribution limits for health savings accounts, or HSAs, which offer triple-tax
Choreograph (Konstantin Yuganov) | Istock | Getty Images The IRS has released the 2027 contribution limits for health savings accounts, or HSAs, which offer triple-tax benefits for investors. Starting in 2027, the new HSA contribution limit will be $4,500 for self-only plans, up from $4,400 in 2026, based on the latest inflation adjustments. The HSA limit for family coverage will also rise in 2027. That cap will jump to $9,000, which is up from $8,750 in 2026, according to the IRS announcement issued on Friday.
HSAs offer three tax benefits: Contributions are ta deductible, the funds grow ta free and you don't pay levies on withdrawals for qualified medical expenses. But to make contributions, you must have an eligible high-deductible health insurance plan. Roughly 31% of companies with employee health coverage offered HSA-eligible high-deductible health plans in 2025, according to KFF, a health policy research group. Many Americans have also purchased these plans via the Affordable Care Act health insurance marketplace.
More than 59 million Americans had an HSA as of Dec. 31, 2024, according to a survey released in July from Devenir, a company that provides HSA investment solutions and research, and the American Bankers Association's Health Savings Account Council. The survey polled the top 20 HSA providers. Two-thirds of employers offered investing options for HSA contributions in 2024, according to the Plan Sponsor Council of America's 2025 HSA survey released in September, which polled about 600 U.S. employers.
But only 20% of HSA participants invested their assets in 2024, up from 18% in 2023. "The reality is that many people need to access their funds for current expenses," Hattie Greenan, director of research and communications for the Plan Sponsor Council of America, previously told CNBC. watch now Republicans focused on HSA expansion
The BriefWire