On Thursday, May 1, 2025, the IRS released Rev. Proc. 2025-19, providing inflation-adjusted Health Saving Account (HSA) and Health Reimbursement Arrangement (HRA) contribution limits for calendar year 2026.
What is an HSA account?
The IRS defines an HSA as “a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur.”
The maximum contribution allowed in 2026 is $4,400 for an individual with a “high-deductible health plan.” This is a $100 increase from the 2025 limit of $4,300.
What is a high-deductible plan?
Under § 223(c)(2)(A) of the Internal Revenue Code, a high-deductible plan is defined as “a health plan with an annual deductible that is not less than $1,700 for self-only coverage or $3,400 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,500 for self-only coverage or $17,000 for family coverage.” It should be noted that a self-covered individual is only eligible to enroll in an HSA under a high-deductible plan.
The maximum contribution allowed in 2026 is $8,750 for an individual with family coverage. This is a $200 increase from the 2025 limit of $8,550. These contribution limits account for employer contributions and any pre-tax contributions made by an employee. Furthermore, individuals aged 55 and up (before the end of the tax year) are qualified to contribute up to an additional $1,000 per calendar year, known as a “catch-up” allowed under Section 223(b)(3) of the Internal Revenue Code.
Refer to Publication 502 for a list of qualified medical expenses eligible for HSA reimbursement. Remember that any expenses taken on Schedule A (itemized deductions form) of your 1040 are not eligible for HSA reimbursement.
What is an Excepted-benefit HRA?
A health reimbursement arrangement (HRA) is a pre-tax reimbursement plan fully funded by an employer that reimburses employees for certain qualified medical expenses and health coverage premiums. The maximum amount an employer can contribute is $2,200 for calendar year 2026. This is a $50 increase from the 2025 limit of $2,150.
If you have any questions about these topics or others, please contact one of our experts.
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