IRS announces 2027 HSA limits

The 2027 contribution limits for Health Savings Accounts (HSAs) were announced in May by the Internal Revenue Service (IRS).

The new contribution limits for 2027 are:

• Self-only coverage: $4,500 (up from $4,400 in 2026)
• Family coverage: $9,000 (up from $8,750 in 2026)
• Catch-up contribution (age 55+ not enrolled in Medicare): $1,000 (unchanged since 2009)
• Spousal catch-up: If both spouses are age 55+ and eligible, each can contribute $1,000 in separate HSAs.

To contribute to an HSA, an employee must be enrolled in an HSA-eligible High Deductible Health Plan (HDHP), which is generally a health plan that only covers “preventive services” before the deductible.

HSAs are an effective savings tool for employees because they provide three tax advantages, which are:

• Pre-tax contributions by employees,
• Tax-free withdrawals for qualified medical expenses, and
• Potential tax-free investment growth.

By contributing as much as possible to an HSA, an employee can turn an HSA into a long-term health care asset because unused contributions roll over year-to-year.

Key to remember: With the 2027 contribution limits announced by the IRS in May, employees will be able to save an additional $100 annually in their HSAs next year.