The IRS not too long ago introduced the rise to the quantity people can contribute to well being financial savings accounts (HSAs) in 2026. Federal workers, retirees and annuitants have a possibility to economize in a tax-advantaged method with the intention to pay present and future medical bills by using HSAs.
The HSA contribution limits for 2026 are $4,400 for self-only protection and $8,750 for household protection.
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HSA Catch-Up Contributions
These eligible and age 55 can contribute an extra $1,000 as a catch-up contribution. An HSA is a tax-exempt belief or custodial account you arrange with a certified HSA trustee to pay or reimburse sure medical bills you incur. You should be an eligible particular person to contribute to an HSA.
2026 HSA Contribution Limits
Spousal catch-up contributions
When you and your partner are each age 55 or over, not enrolled in Medicare, and in any other case eligible, you every could make $1,000 HSA catch-up contributions, however it’s essential to achieve this in separate HSAs. These contributions could be taken as a tax deduction in your private taxes assuming they’re not carried out via payroll deductions.
HSA Guidelines for Married Folks
The IRS guidelines for married folks apply provided that each spouses are eligible people. If both partner has household HDHP protection, the household contribution restrict applies; each spouses are handled as having household HDHP protection.
If each spouses are 55 or older and never enrolled in Medicare:
- Every partner is entitled to extend his or her contribution restrict with an extra contribution.
- Their most whole contributions underneath household HDHP protection would come with a catch-up contribution for every partner.
- The contribution restrict is split between the spouses by settlement. If there is no such thing as a settlement, the contribution restrict is cut up equally between the spouses.
- Any further contribution for age 55 or over should be made by every partner to his or her personal HSA.
Eligibility to Contribute to an HSA
To be eligible to contribute to an HSA, a participant should be enrolled in an HSA-qualified excessive deductible medical insurance plan (HDHP). Every year the IRS defines what constitutes an HDHP.
A excessive deductible well being plan is outlined as a well being plan with an annual deductible that isn’t lower than $1,650 for self-only protection or $3,300 for household protection, and for which “the annual out-of-pocket bills (deductibles, co-payments, and different quantities, however not premiums) don’t exceed $8,300 for self-only protection or $16,600 for household protection,” in keeping with the IRS.
The next info is from OPM concerning HSAs and Federal Workers Well being Advantages (FEHB) enrollment:
A Well being Financial savings Account permits people to pay for present well being bills and save for future certified medical bills on a pre-tax foundation. Funds deposited into an HSA should not taxed, the steadiness within the HSA and curiosity grows tax free, and that quantity is out there on a tax free foundation to pay your certified medical bills, together with your copays, coinsurance and deductible.
Whenever you enroll in an HDHP, the well being plan determines whether or not you’re eligible for a Well being Financial savings Account (HSA) or a Well being Reimbursement Association (HRA) primarily based on the knowledge you present.
Who’s eligible for an HSA?
You might be eligible for an HSA if you’re:
• Enrolled in an HDHP and never coated by one other well being plan (together with a partner’s well being plan, however not together with particular damage insurance coverage and accident, incapacity, dental care, imaginative and prescient care, or long-term care protection)
• Not enrolled in Medicare
• Not in receipt of VA or Indian Well being Service (IHS) medical advantages throughout the final three months
The FEHB program affords many varieties of medical insurance plans, together with well being plans which can be HDHP certified and related to an HSA. Workers who’re at present not enrolled in an FEHB program HDHP and who’re all for enrolling in such a plan related to an HSA for 2025 might achieve this through the subsequent FEHB open season to be held from early November 2024 to early December 2024.
