May 01, 2025

IRS Announces Increased HSA, HDHP and EBHRA Limits for 2026

Employee Benefits

2 min read

IRS Announces Increased HSA, HDHP and EBHRA Limits for 2026

The Internal Revenue Service (IRS) just announced in Revenue Procedure 2025-19 inflation adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2026, along with the maximum amount for excepted benefit health reimbursement arrangements (EBHRAs) for 2026.

The table below compares the applicable dollar limits for HSAs, HDHPs, and EBHRAs for 2026 and 2025.

Plan Limits		2026	2025	Change from 2025
HSAs – annual contribution limit^[1]	Self-only coverage	$4,400	$4,300	+$100
HSAs – annual contribution limit^[1]	Family coverage	$8,750	$8,550	+$200

HSAs – catch-up contribution limit	Age 55 or older	$1,000	$1,000	No change

HDHPs – minimum annual deductible	Self-only coverage	$1,700	$1,650	+$50
HDHPs – minimum annual deductible	Family coverage	$3,400	$3,300	+$100

HDHPs – maximum annual out-of-pocket expenses limit (deductibles, copayments, and other amounts, but not premiums)	Self-only coverage	$8,500	$8,300	+$200
	Family coverage	$17,000	$16,600	+$400
EBHRAs – maximum amount		$2,200	$2,150	+$50

Employers Next Steps

Review the table above to be informed of 2026 plan and contribution limits for January 1, 2026 as you start to consider any plan design changes for the 2026 plan year.
As you begin preparations for the 2026 plan year, update payroll and benefit administration systems with these new limits for 2026 and revise applicable plan communications (e.g., open enrollment materials and summary plan descriptions) for 2026.
Stay tuned for 2026 contribution limits for other tax-advantaged accounts (such as Flexible Spending Accounts, commuter benefit plans, and retirement plans) later in the year, typically announced by the IRS in October or November.

Reminders:

ACA OOPM: The Affordable Care Act (ACA) requires all non-grandfathered health plans to include an out-of-pocket maximum (OOPM) on coverage of Essential Health Benefits (EHBs). These ACA OOPMs are different, and generally higher, than the limits for HSA-qualifying HDHPs outlined above.
- For the 2026 calendar year, the ACA OOPMs are:
  - $10,150 for self-only coverage (up from $9,200 for 2025), and
  - $20,300 for other than self-only coverage (up from $18,400 for 2025).
- EHBs reflect the scope of benefits covered by a typical employer-sponsored group health plan and must cover items and services in 10 general categories, including emergency services, hospitalization, prescription drugs, and maternity and newborn care, among others.
Embedded individual deductible: If family HDHP coverage includes an embedded individual deductible, it cannot be lower than the required minimum annual family coverage deductible - $3,400 in 2026.
EBHRAs: Employers offer EBHRAs to reimburse the cost of excepted benefits (such as limited-scope dental or vision coverage), short-term, limited-duration insurance plan premiums, as well as eligible out-of-pocket healthcare expenses.

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[1] Includes both employee and employer contribution amount limits.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.