IRS Announces 2026 HSA and HRA Contribution Limits: What Employers Need to Know

Introduction

• IRS Updates HSA And HRA Limits For 2026
• 2026 HSA Contribution Limits
• High Deductible Health Plan (HDHP) Requirements For 2026
• 2026 HRA Limit For Excepted Benefit HRAs
• Next Steps For Employers

IRS Updates HSA And HRA Limits For 2026

In May 2025, the IRS issued Revenue Procedure 2025-19, outlining the updated HSA and HRA contribution limits for calendar year 2026. Employers offering high deductible health plans (HDHPs) or excepted benefit HRAs should take note of these changes now to ensure plan compliance and support effective benefits planning.

2026 HSA Contribution Limits

The annual contribution limits for health savings accounts (HSAs) are increasing in 2026. Employees and employers alike should be aware of the new thresholds:

• Self-only HDHP coverage: $4,400

• Family HDHP coverage: $8,750

These limits apply to the total contributions from both the employee and the employer.

High Deductible Health Plan (HDHP) Requirements For 2026

To qualify for HSA contributions, a health plan must meet certain minimum deductible and out-of-pocket maximums. For 2026, the IRS defines an HDHP as:

• Minimum annual deductible:

  • $1,700 for self-only coverage

  • $3,400 for family coverage

• Maximum annual out-of-pocket expenses:

  • $8,500 for self-only coverage

  • $17,000 for family coverage

These requirements are designed to ensure HSAs are paired with true high-deductible plans that align with their intended purpose.

2026 HRA Limit For Excepted Benefit HRAs

The IRS also announced the maximum amount for excepted benefit HRAs in 2026. Employers can make up to $2,200 available for the plan year.

Excepted benefit HRAs are typically offered to cover out-of-pocket expenses not included in a primary group health plan and are subject to specific regulatory limits.

Next Steps For Employers

As these new limits take effect for the 2026 plan year, employers should:

• Review existing plan documents and contribution strategies

• Communicate changes clearly to employees during open enrollment

• Work with benefits advisors or brokers to ensure compliance

The rules and regulations governing these accounts can be complex, so work with a professional.

©2025 - Content on this blog is intended to provide helpful, general information. Because laws and regulations evolve, please consult an HR professional or legal expert for guidance specific to your situation.