HDHPs and Health Savings Accounts: 2027 limits and how they work
A Health Savings Account (HSA) lets people with HSA-compatible coverage set aside money for medical costs with three tax advantages. For 2027, the IRS limits are $4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up at age 55 or older. A qualifying HDHP for 2027 has a deductible of at least $1,750 (self) / $3,500 (family) and out-of-pocket costs capped at $8,700 / $17,400. Since 2026, Marketplace-available Bronze and Catastrophic plans also qualify.
2027 HSA and HDHP limits
| 2027 limit | Self-only | Family |
|---|---|---|
| Maximum HSA contribution | $4,500 | $9,000 |
| Catch-up contribution (age 55+) | $1,000 extra | |
| HDHP minimum deductible | $1,750 | $3,500 |
| HDHP maximum out-of-pocket (excluding premiums) | $8,700 | $17,400 |
Source: IRS Revenue Procedure 2026-24. Contribution limits include employer contributions.
Which plans are HSA-compatible
- HSA-qualified HDHPs that meet the IRS deductible and out-of-pocket rules above.
- Bronze and Catastrophic plans available through an Exchange, starting January 1, 2026, under the One, Big, Beautiful Bill Act. IRS Notice 2026-05 clarifies they don't have to be bought through the Exchange to qualify.
- Telehealth before the deductible no longer disqualifies a plan (made permanent for plan years beginning in 2025).
- Certain direct primary care arrangements, with fees up to $150 a month for one person or $300 for more than one in 2027, don't disqualify you, and HSA money can pay those fees.
Who can contribute
Per IRS Publication 969, to contribute to an HSA you must be covered by an HSA-compatible plan, have no other disqualifying health coverage, not be enrolled in Medicare, and not be claimable as a dependent on someone else's tax return.
The tax advantages
- Contributions are tax-deductible (or pre-tax through payroll).
- Growth in the account isn't taxed.
- Withdrawals for qualified medical expenses are tax-free.
The money is yours, rolls over every year and stays with you if you change jobs or plans. Withdrawals for non-medical purposes are taxed and, before age 65, generally face an additional 20% tax.
HSA vs FSA vs HRA
| HSA | Health FSA | HRA | |
|---|---|---|---|
| Who owns it | You | Employer plan | Employer plan |
| Needs an HSA-compatible plan? | Yes | No | No |
| Who funds it | You and/or employer | Mostly you (payroll) | Employer only |
| Rolls over? | Yes, always | Limited, if the plan allows | Depends on the plan |
Turning 65 or getting Medicare?
Once you enroll in any part of Medicare, you can no longer contribute to an HSA (you can still spend what's in it). If you're working past 65 with an HSA, plan Medicare enrollment carefully; see Medicare enrollment periods.
Frequently asked questions
What are the 2027 HSA contribution limits?
$4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up contribution if you're 55 or older, per IRS Rev. Proc. 2026-24.
Can I open an HSA with a Marketplace Bronze plan?
Yes. Starting in 2026, Bronze and Catastrophic plans available through an Exchange are treated as HSA-compatible, provided you meet the other eligibility rules.
Can I contribute to an HSA on Medicare?
No. Once you're enrolled in Medicare you can't make new HSA contributions, though you can use existing HSA funds for qualified expenses.
Does HSA money expire at the end of the year?
No. HSA balances roll over indefinitely and belong to you, even if you change jobs or health plans.
What's the minimum deductible for an HDHP in 2027?
$1,750 for self-only coverage and $3,500 for family coverage, with out-of-pocket maximums of no more than $8,700 and $17,400.
Sources
- IRS Rev. Proc. 2026-24: 2027 HSA and HDHP limits (PDF) (accessed October 28, 2026)
- IRS: Guidance on new HSA benefits under the One, Big, Beautiful Bill (Notice 2026-05) (accessed October 28, 2026)
- IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans (accessed October 28, 2026)
- HealthCare.gov: Health plan categories (Bronze, Silver, Gold & Platinum) (accessed October 28, 2026)