The Internal Revenue Service (IRS) has officially announced the 2026 contribution limits for Health Savings Accounts (HSAs), providing employers and employees with an early opportunity to plan ahead. These updated caps reflect the ongoing impact of inflation on health care costs and signal a continued trend toward higher savings opportunities for those enrolled in high-deductible health plans (HDHPs).
2026 HSA Contribution Limits
Starting on January 1, 2026, the HSA contribution caps will increase to the following:
- Individual coverage: $4,400 (up from $4,300 in 2025)
- Family coverage: $8,750 (up from $8,550 in 2025)
- Catch-up contributions (Age 55+): Remain unchanged at $1,000
To contribute to an HSA, employees must be enrolled in a HDHP. The 2026 IRS thresholds for HDHPs are also increasing:
Minimum deductible:
- Self-only: $1,700
- Family: $3,400
Maximum out-of-pocket limit:
- Self-only: $8,500
- Family: $17,000
These increases are tied to inflation adjustments and are part of a broader trend to help individuals better prepare for growing health care expenses.
Why This Matters for Employers
As the cost of health care continues to climb, HSAs remain a powerful tool for both employers and employees. They offer triple tax advantages, pre-tax contributions, tax-free interest and investment earnings, and tax-free withdrawals for qualified medical expenses.
For employers, offering an HSA as part of your benefits package not only enhances your overall offerings but also encourages cost-conscious health care choices and long-term savings among employees. With 2026 limits now available, proactive planning can help you maximize these benefits for your workforce.
Steps Employers Should Take
Now is the time to begin evaluating your benefits strategy for the year ahead. Employers can take the following actions today:
- Review your current HDHP offerings: Ensure that your health plans for 2026 will meet the updated deductible and out-of-pocket requirements for HSA eligibility.
- Update your employee education materials: Inform employees early about the upcoming changes so they can make informed decisions during open enrollment.
- Assess contribution matching strategies: Consider increasing employer HSA contributions to align with the new caps. This can boost employee retention and improve financial wellness.
- Incorporate Flexible Spending Accounts (FSAs): Complement your HSA offerings with FSAs for employees who may not be enrolled in HDHPs, allowing more flexibility in managing health care costs.
- Partner with a trusted benefits administrator: Working with a knowledgeable third-party administrator can streamline compliance, simplify plan management, and ensure you’re making the most of tax-advantaged benefits.
How GMS Can Help Strengthen Your Benefits Program
At Group Management Services (GMS), our benefits experts are here to help you make the most of your health savings offerings. We provide:
- Expert guidance on plan design and compliance to ensure your HDHPs and HSAs meet IRS requirements.
- HSA and FSA administration services to simplify account management and reduce administrative burden.
- Comprehensive group health insurance plans that integrate seamlessly with savings accounts.
- Employee education tools to help your workforce understand and utilize their benefits effectively.
Offering HSAs and FSAs is more than just a checkbox; it’s a strategic advantage. With GMS as your partner, you can ensure your benefits program is compliant, competitive, and built to support the health and financial wellness of your employees.
Ready to elevate your benefits strategy for 2026? Contact GMS today to get started.