The 2027 limits
The IRS announced the 2027 figures in Revenue Procedure 2026-24 in mid-2026:
| 2026 | 2027 | |
|---|---|---|
| HSA contribution limit, self-only coverage | $4,400 | $4,500 |
| HSA contribution limit, family coverage | $8,750 | $9,000 |
| Catch-up contribution (age 55+) | $1,000 | $1,000 |
| HDHP minimum deductible, self-only | $1,700 | $1,750 |
| HDHP minimum deductible, family | $3,400 | $3,500 |
| HDHP out-of-pocket maximum, self-only | $8,500 | $8,700 |
| HDHP out-of-pocket maximum, family | $17,000 | $17,400 |
The $1,000 catch-up is set by law and is not adjusted for inflation. The limits apply to all contributions combined, including your employer's.
How an HSA works
A health savings account (HSA) is a tax-advantaged account for medical costs, available to people covered by a high-deductible health plan (HDHP) that meets IRS rules.
The triple tax advantage:
- Contributions are tax-deductible, or made before tax through payroll, which also avoids Social Security and Medicare taxes.
- Growth is tax-free if you invest the balance.
- Withdrawals for qualified medical expenses are tax-free.
No other US account offers all three.
Other features:
- The money rolls over year after year. Unlike a flexible spending account (FSA), there is no "use it or lose it".
- The account is yours, even if you change jobs or health plans.
- After 65, you can withdraw for non-medical purposes without penalty, paying ordinary income tax, like a traditional IRA.
- Before 65, non-medical withdrawals face income tax plus a 20 percent penalty.
Who is eligible
You can contribute to an HSA for a month if, on the first day of that month, you:
- Are covered by an HSA-eligible HDHP.
- Have no other disqualifying coverage, such as a non-HDHP plan or a general-purpose FSA.
- Are not enrolled in Medicare.
- Cannot be claimed as a dependant on someone else's tax return.
If you pick a Marketplace plan during 2027 open enrollment, check that it is labelled HSA-eligible.
Using an HSA as a retirement account
Some people pay current medical costs out of pocket, keep the receipts, and invest their HSA for decades:
- The investments grow tax-free.
- There is no deadline for reimbursing yourself for qualified expenses incurred after the HSA was opened, as long as you keep records.
- In retirement, the HSA can pay Medicare premiums (except Medigap) and other healthcare costs tax-free.
This strategy works best if you can afford to pay medical bills from other savings. Many advisers suggest this order for retirement saving: get any employer 401(k) match, then max an HSA, then fund a Roth IRA and more 401(k) contributions. See our guides to Roth IRA contribution limits and 401(k) limits.
What counts as a qualified medical expense
Common examples include deductibles and co-pays, prescriptions, dental and vision care, glasses and contact lenses, and many over-the-counter medicines and menstrual products. Cosmetic procedures and gym memberships generally do not qualify. IRS Publication 502 has the full list.
Deadlines and tips
- You can make 2027 contributions until the tax filing deadline in April 2028.
- If you join an HDHP mid-year, special rules (including the last-month rule) can affect how much you can contribute.
- Invest the balance beyond a cash buffer, if your provider allows, and compare provider fees.
- Keep receipts for every medical expense.
Key takeaways
- 2027 HSA limits: $4,500 self-only and $9,000 family, plus $1,000 at 55 or older.
- You need an HSA-eligible high-deductible health plan and no Medicare.
- HSAs are triple tax-advantaged and roll over every year.
- Invested and left alone, an HSA can work as an extra retirement account.
This article is general information, not tax or financial advice. Confirm your eligibility and limits with the IRS or a qualified adviser.