Key takeaways
- HSA contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
- 2026 limits are $4,400 for self-only coverage and $8,750 for family coverage; 2027 limits rise to $4,500 and $9,000.
- Starting in 2026, more marketplace plans qualify, including bronze and catastrophic plans.
A health savings account (HSA) is a tax-advantaged account you can use with an HSA-eligible health plan. It’s one of the few accounts with three tax benefits.
The triple tax advantage
- Contributions lower your taxable income, and payroll contributions also skip Social Security and Medicare taxes.
- Your money grows tax-free if you invest it.
- Withdrawals for qualified medical expenses are tax-free.
Contribution limits
| Coverage | 2026 | 2027 |
|---|---|---|
| Self-only | $4,400 | $4,500 |
| Family | $8,750 | $9,000 |
| Catch-up (55+) | +$1,000 | +$1,000 |
Employer contributions count toward the limit. You can contribute for 2026 until April 15, 2027.
Who’s eligible
You must be covered by an HSA-eligible health plan and have no disqualifying coverage. Once you enroll in any part of Medicare, you can no longer contribute, though you can still use the money.
New for 2026: Under the 2025 tax law, bronze and catastrophic plans bought through the ACA marketplace are treated as HSA-eligible, and people in certain direct primary care arrangements can now contribute.
Use it as a retirement account
If you can afford to pay current medical bills out of pocket, you can leave your HSA invested to grow. Keep receipts; you can reimburse yourself tax-free for qualified expenses years later. After 65, you can withdraw for any reason, paying income tax on non-medical withdrawals (similar to a traditional IRA).
HSA vs. FSA
| HSA | Health FSA | |
|---|---|---|
| Who owns it | You | Your employer’s plan |
| Rolls over | Yes, forever | Limited, or “use it or lose it” |
| Can invest | Yes | No |
| 2026 limit | $4,400 / $8,750 | $3,400 |
Getting started
If your employer offers an HSA, contribute through payroll for the extra tax savings. Check whether your HSA provider lets you invest once your balance reaches a certain level, and compare fees.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
