The IRS has released its annual inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs), with higher contribution and cost-sharing limits taking effect in 2027.
For individuals enrolled in self-only HDHP coverage, the maximum HSA contribution will increase to $4,500 in 2027, up from $4,400 in 2026. Individuals with family HDHP coverage will be able to contribute up to $9,000, an increase from $8,750. Those age 55 and older can continue to make an additional $1,000 catch-up contribution.
The IRS is also increasing the minimum deductible requirements for HDHPs. In 2027, the minimum deductible will be $1,750 for self-only coverage and $3,500 for family coverage, up from $1,700 and $3,400, respectively, in 2026.
In addition, the maximum amount individuals may pay out of pocket for covered health care expenses under an HDHP will rise. For 2027, the out-of-pocket maximum will be $8,700 for self-only coverage and $17,400 for family coverage, compared to $8,500 and $17,000 in 2026.
These annual adjustments are intended to account for inflation and help individuals continue to save for current and future health care expenses on a tax-advantaged basis. Individuals participating in an HSA may want to review their contribution elections for 2027 to take advantage of the higher limits and maximize their potential tax savings.
To download more information click here.
For poster version of HSA and HDHP limits click here.
Image by Marek Studzinski on Unsplash.
About the Authors:
Melissa Cooke joined Rue in 2022 as the Director of Sales, bringing over 20 years of management and sales experience. As Director of Sales, Melissa is responsible for the strategic direction, vision, growth and performance of the sales team. As the leader of the sales team, Melissa helps the department define and navigate the sales cycle. Melissa is also responsible for the training and developing our sales internship program at Rue Insurance.
Maura Gorman is a Risk Management Sales Intern at Rue Insurance. She is a rising senior at Pennsylvania State University and will graduate with a bachelor’s degree in business marketing and management. During her internship she will be focusing on Health Insurance, more specifically, Medical Malpractice Insurance.
