Many industry experts tout health savings accounts as a smart way for employees to save for medical expenses, even in retirement, citing their triple tax benefits: Contributions are made pretax, the money in the accounts grows tax-free and withdrawals for qualified medical expenses are tax-free.
The IRS released the HSA and high-deductible health plan figures for 2027. The annual limit on HSA contributions for self coverage in 2027 will be $4,500, a 2.3 percent increase from the $4,400 limit in 2026, the IRS announced May 29. For family coverage, the HSA contribution limit will jump to $9,000 next year, up 2.9 percent from $8,750 in 2026.
Source: SHRM, May 29, 2026. Link.
Employers offering HSAs need to improve education on these benefits, and explain to employees how to best take advantage of these accounts and use them to their full advantage.”
Image: Link.
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