IRS Announces 2027 HSA Contribution Limits

The IRS released the contribution limits for Health Savings Accounts (HSAs) for 2027. In the upcoming year, we will see an HSA contribution limit increase to $4,500 for individuals and an increase to $9,000 for a family. The IRS implemented inflation-adjusted parameters for health savings accounts in Revenue Procedure 2026-24.

For 2027, individuals with self-only coverage can contribute up to $4,500 to their HSAs, up from $4,400 in 2026. Individuals enrolled in family coverage can contribute up to $9,000, up from $8,750 in 2026. The IRS also noted that the 2027 catch-up contribution for those aged 55 and older will remain $1,000, unchanged from 2026.

Health Savings Accounts remain a valuable tool for individuals and families enrolled in qualified high-deductible health plans (HDHPs). HSAs offer tax advantages, allow unused funds to roll over from year to year, and can serve as a long-term savings vehicle for future healthcare needs.

Many HSA providers also offer investment options, allowing account balances to potentially grow over time while helping individuals prepare for healthcare costs in retirement.

According to Fidelity Investments’ 2025 Retiree Health Care Cost Estimate, a single 65-year-old retiring can expect to spend an average of $172,000 in health care and medical expenses throughout retirement. These figures are up nearly 4% over 2024. Understanding how to save and invest with an HSA plan is key to planning for expected and unexpected medical expenses.

If you are in an HSA and have questions about how to get the most out of your plan, CalCPA Health can help answer them. CalCPA Health is at the forefront of HSA adoption, offering the most HSA plan options in California. CalCPA members have a strong understanding of the tax benefits HSAs provide. Education is key, and CalCPA Health is here to help whether or not you are in one of our plans. We are a resource for you, so please feel free to ask questions by emailing info@calcpahealth.com.