By Mark Hodges, CPA, CFP®, Tax Senior Manager
What Employers and Individuals Should Know About the 2027 Updates
The Internal Revenue Service (IRS) has released Revenue Procedure 2026-24, outlining the inflation-adjusted contribution limits and plan thresholds for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) for 2027.
Overall, the updates reflect modest increases across contribution limits, deductibles, and out-of-pocket maximums. This is consistent with recent trends tied to inflation adjustments.
Key Highlights for 2027
For 2027, individuals and families using HSAs will see slight increases in how much they can contribute, along with higher thresholds for qualifying HDHPs:
- HSA contribution limits are increasing for both self-only and family coverage
- HDHP minimum deductibles are rising
- Out-of-pocket maximums are also higher
- Catch-up contributions remain unchanged
These changes are important for both employers planning benefit offerings and individuals looking to maximize tax-advantaged savings.
HSA and HDHP Limits 2026 vs 2027
| Category | 2026 | 2027 | Change |
|---|---|---|---|
| HSA Contribution Limit (Self-Only) | $4,400 | $4,500 | +$100 |
| HSA Contribution Limit (Family) | $8,750 | $9,000 | +$250 |
| Catch-Up Contribution (Age 55+) | $1,000 | $1,000 | No change |
| HDHP Min Deductible (Self-Only) | $1,700 | $1,750 | +$50 |
| HDHP Min Deductible (Family) | $3,400 | $3,500 | +$100 |
| Out-of-Pocket Max (Self-Only) | $8,500 | $8,700 | +$200 |
| Out-of-Pocket Max (Family) | $17,000 | $17,400 | +$400 |
Considerations for Employers and Individuals
For individuals enrolled in an HSA-eligible health plan, the increased contribution limits provide an opportunity to contribute slightly more into tax-advantaged savings to cover current or future healthcare expenses. There are also additional benefits/strategies for these accounts which are covered in more detail here.
Employers may also want to review benefit plan communications and enrollment materials to ensure they reflect the updated IRS thresholds. Organizations offering HDHPs should confirm that plan designs continue to meet applicable requirements for HSA eligibility.
Individuals aged 55 and older may continue to make an additional $1,000 catch-up contribution. This remains unchanged and is not indexed for inflation. For married couples who are both age 55 or older and covered under family HSA coverage, the combined catch-up contribution remains unchanged at $2,000.
Planning for 2027
Annual inflation adjustments may appear incremental, but they can influence healthcare budgeting, contribution strategies, and benefit planning decisions. Reviewing these updated limits before the start of the plan year can help individuals and employers prepare for 2027.
Questions about employee benefit plans or the impact of these changes on your organization? Contact your Keiter Opportunity Advisor.
About the Author
Mark Hodges, CPA, CFP®, Tax Senior Manager
To assist his clients in meeting their goals and objectives, Mark takes a team approach – working collaboratively with his clients, their other advisors, and legal counsel. He also specializes in identifying and helping to implement trust and estate planning opportunities for his clients. Mark is a member of Keiter’s Private Client Services team.
More Insights from Mark HodgesThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
