IRS Announces New HSA Contribution Limits for 2027

The IRS has announced updated health savings account (HSA) contribution limits and high-deductible health plan (HDHP) parameters for 2027, reflecting standard inflation adjustments.

New HSA Contribution Limits Announced

Employees will be able to contribute slightly more to their HSAs next year. Employer contributions remain included in the total annual limit.

The HSA contribution limits for 2027 are as follows:

• Self-only coverage: $4,500 (up from $4,400 in 2026)
• Family coverage: $9,000 (up from $8,750 in 2026), and
• Catch-up contributions (age 55+): $1,000 (unchanged; fixed under IRC §223(b)(3)).

Plan sponsors should update payroll systems and employee communication materials ahead of open enrollment to reflect these changes.

HDHP Minimum Deductibles and Out-of-Pocket Maximums (2027)

To maintain HSA eligibility, health plans must meet the following minimum deductible and maximum out-of-pocket thresholds for calendar year 2027:

Self-only coverage:

• Minimum deductible: $1,750, and
• Out-of-pocket max: $8,700.

Family coverage:

• Minimum deductible: $3,500, and
• Out-of-pocket max: $17,400.

These figures may influence plan design decisions heading into 2027 and could affect overall health benefits strategy.

The One Big Beautiful Bill Act updated HSA eligibility rules for employees enrolled in a Direct Primary Care Service Arrangement (DPCSA). Previously, DPCSA enrollment could disqualify an individual from contributing to an HSA. That restriction no longer applies effective Jan. 1, 2026, provided monthly DPCSA fees do not exceed $150 for an individual or $300 for an arrangement covering more than one person.

Finance leaders should note that DPCSA arrangements may offer a lower-cost primary care option; when paired with an HSA-eligible HDHP, they can help manage benefits costs while preserving HSA tax advantages for eligible employees.

Reminder: Triple Tax Advantage of HSAs

HSAs continue to offer unmatched tax efficiency, which can serve as a powerful employee benefit and financial planning tool:

• Pre-tax contributions: Lower taxable income
• Tax-free investment growth: Assets can grow without tax drag, and
• Tax-free qualified withdrawals: Funds used for eligible medical expenses are not taxed.

For finance leaders, HSAs can support broader cost-containment strategies and help employees build long-term healthcare savings with favorable tax treatment.