Open enrollment is a good time to review your health plan choices. If you are considering a high-deductible health plan (HDHP) with a Health Savings Account (HSA) for 2027, the IRS has released the inflation-adjusted limits for next year.

2027 HSA and HDHP limits

• HSA contribution limit: $4,500 for self-only coverage and $9,000 for family coverage (up from $4,400 and $8,750 for 2026). Account holders age 55 or older can contribute an additional $1,000.
• HDHP minimum deductible: $1,750 for self-only coverage and $3,500 for family coverage.
• HDHP out-of-pocket maximum: $8,700 for self-only coverage and $17,400 for family coverage (not including premiums).
• Direct primary care arrangements: Fees of up to $150 per month for one individual, or $300 per month for more than one, are allowed without affecting HSA eligibility.
• Excepted benefit HRAs: Employers can offer up to $2,250 for plan years beginning in 2027.

Why it matters

HSA contributions are tax-deductible (or pre-tax through payroll), the account grows tax-free, and withdrawals for qualified medical expenses are tax-free. Unused balances carry over from year to year, making an HSA a useful savings tool for both current and future health costs.

How we can help: If you are an employer setting up HSA or HRA contributions through payroll, or an individual deciding how much to contribute, contact Teddy Accounting Services and we can walk through the numbers with you.

Source: IRS Revenue Procedure 2026-24