2027 IRS HSA Contribution and HDHP Limits (Revenue Procedure 2026-24)

In mid-2026, the Internal Revenue Service (IRS) issued Revenue Procedure 2026-24, which detailed the inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) for the 2027 calendar year. These annual adjustments are mandated by Section 223 of the Internal Revenue Code and are intended to account for inflation, ensuring that the tax-advantaged savings limits keep pace with the rising costs of healthcare.^[1][2]

Revenue Procedure 2026-24 officially increased the maximum contribution limits for both self-only and family coverage. It also raised the minimum deductible requirements and the maximum out-of-pocket caps that a health insurance plan must meet to be classified as a qualifying HDHP. These changes apply to plan years beginning in 2027 and require employers, plan administrators, and individual participants to adjust their payroll deductions, plan designs, and benefits documentation accordingly.^[1][2][3][4]

The maximum amount individuals and employers can contribute to a Health Savings Account increased moderately from 2026 to 2027. For an individual enrolled in self-only HDHP coverage, the 2027 contribution limit is set at $4,500. This represents a $100 increase from the 2026 limit of $4,400.^[3][4]

For individuals enrolled in family HDHP coverage, the maximum contribution limit for 2027 is $9,000. This is a $250 increase over the 2026 limit, which was $8,750. As in previous years, these limits represent the total combined maximum of both employer and employee contributions. If an employer contributes to an employee's HSA, the employee must subtract that amount from the total limit to determine how much they can personally contribute on a pre-tax basis.^[3][4]

The catch-up contribution limit for individuals aged 55 and older is set by statute and is not subject to annual inflation adjustments. Therefore, the catch-up contribution amount remains flat at $1,000 for 2027, the same as it was in 2026 and prior years. This allows eligible individuals with self-only coverage to contribute up to $5,500, and those with family coverage to contribute up to $10,000.^[1][3][4]

To be eligible to make contributions to an HSA, an individual must be covered by a qualifying High Deductible Health Plan (HDHP). The IRS defines an HDHP by establishing a minimum annual deductible and a maximum annual out-of-pocket limit. Both of these metrics increased for 2027 under Revenue Procedure 2026-24.^[1][2][3]

For self-only coverage in 2027, the minimum annual deductible that a plan must have to qualify as an HDHP is $1,750. This is a $50 increase from the 2026 minimum deductible of $1,700. For family coverage, the minimum annual deductible increased by $100, moving from $3,400 in 2026 to $3,500 in 2027.^[1][2][3][4]

The IRS also sets a ceiling on the amount of out-of-pocket expenses (such as deductibles, co-payments, and other amounts, but excluding premiums) that an individual can be required to pay under the plan. For 2027, the maximum out-of-pocket limit for self-only coverage is $8,700, an increase from the $8,500 limit in 2026. For family coverage, the 2027 maximum out-of-pocket limit is $17,400, up from the $17,000 limit in 2026.^[1][2][3][4]

In addition to HSA and HDHP limits, Revenue Procedure 2026-24 also updated the limits for excepted benefit Health Reimbursement Arrangements (HRAs). For plan years beginning in 2027, the maximum amount that may be made newly available for an excepted benefit HRA is $2,250. This represents an increase over prior limits.^[1][2][4]

The Revenue Procedure also provided details regarding Direct Primary Care Service Arrangements (DPCSAs). For months beginning in calendar year 2027, the aggregate fees for all DPCSAs with respect to an individual must not exceed $150 per month, or $300 for a family, in order for the arrangement to not disqualify the individual from HSA eligibility. These DPCSA thresholds were established under Section 223(c)(1)(E) and apply to determining whether the arrangement is treated as a disqualifying health plan.^[2]

Whether the 'One Big Beautiful Bill Act' actually passed and reclassified ACA Bronze/Catastrophic plans as HDHPs for 2026 onward, as claimed by one commercial source. · How employers are adjusting their overall benefit strategies in direct response to the $1,750/$3,500 minimum deductibles.^[1]