If you have a Health Savings Account (HSA) and are enrolled in an eligible high-deductible health plan (HDHP), you can contribute more to your HSA in 2027.
The IRS has increased the annual HSA contribution limits for 2027 to:
- $4,500 for individuals with self-only HDHP coverage
- $9,000 for individuals with family HDHP coverage
- An additional $1,000 catch-up contribution for individuals age 55 or older
For comparison, the 2026 HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage.
An HSA can help you save for qualified healthcare expenses today while also providing potential tax advantages for future healthcare costs.
What Is an HSA?
A Health Savings Account (HSA) is a tax-advantaged savings account that allows eligible individuals to set aside money for qualified medical expenses.
To contribute to an HSA, you generally must be covered by an eligible high-deductible health plan (HDHP) and meet other IRS eligibility requirements.
Unlike a flexible spending account (FSA), HSA funds generally roll over from year to year. You don’t have to spend the money by the end of the year, allowing your balance to grow over time.
What Are the 2027 HSA Contribution Limits?
The IRS has established the following HSA contribution limits for calendar year 2027:
| HSA coverage |
2027 contribution limit |
| Self-only HDHP coverage |
$4,500 |
| Family HDHP coverage |
$9,000 |
| Age 55+ catch-up contribution |
Additional $1,000 |
The $1,000 catch-up contribution is available to eligible individuals who are age 55 or older by the end of the tax year.
Your contribution limit may be different if you are only eligible for an HSA for part of the year or if your HDHP coverage changes during the year.
What Are the 2027 HDHP Requirements?
For an HDHP to meet the IRS requirements for HSA purposes in 2027, the plan must have:
- A minimum annual deductible of $1,750 for self-only coverage
- A minimum annual deductible of $3,500 for family coverage
- Maximum annual out-of-pocket expenses of $8,700 for self-only coverage
- Maximum annual out-of-pocket expenses of $17,400 for family coverage
These limits apply to deductibles, copayments and other qualifying out-of-pocket expenses and do not include premiums.
How Does an HSA Provide Tax Advantages?
One of the biggest benefits of an HSA is its potential triple tax advantage:
- Contributions may be tax-deductible or made on a pre-tax basis, depending on how they are made.
- Money in the HSA can grow tax-free.
- Withdrawals used for qualified medical expenses are generally tax-free.
These tax advantages can make an HSA a valuable part of your overall financial strategy.
Can You Use HSA Money for Future Healthcare Expenses?
Yes. HSA funds can generally be used to pay for qualified medical expenses for yourself, your spouse and eligible dependents.
You can use your HSA to help pay for eligible expenses such as:
- Doctor visits
- Prescription medications
- Dental care
- Vision care
- Other qualified medical expenses
Because unused HSA funds generally carry over from year to year, you can also use an HSA to build savings for future healthcare expenses.
Depending on the HSA provider and account balance, some HSAs may offer investment options that allow eligible funds to be invested for potential long-term growth.
Why Consider Maximizing Your HSA Contributions?
Increasing your HSA contribution can help you prepare for both current and future healthcare expenses.
For example, someone with family HDHP coverage could contribute up to $9,000 in 2027, before considering any applicable employer contributions. An eligible individual age 55 or older could contribute an additional $1,000.
Contributing more may also allow you to take greater advantage of the HSA’s tax benefits.
Before increasing your contribution, consider your healthcare needs, budget, employer contributions and eligibility for an HSA.
What Should You Do Before 2027?
If you are eligible to contribute to an HSA, consider reviewing your current contributions before the 2027 plan year begins.
You may want to:
- Review your 2026 HSA contributions.
- Check whether your health plan will qualify as an HDHP in 2027.
- Determine whether you are eligible to contribute to an HSA.
- Review whether your employer contributes to your HSA.
- Consider increasing your contribution to take advantage of the higher 2027 limit.
- Review your long-term healthcare and retirement savings strategy.
HSA Frequently Asked Questions
What is the HSA contribution limit for 2027?
The 2027 HSA contribution limit is $4,500 for self-only HDHP coverage and $9,000 for family HDHP coverage.
How much can someone age 55 or older contribute to an HSA in 2027?
An eligible individual age 55 or older can make an additional $1,000 catch-up contribution in 2027.
What was the HSA contribution limit for 2026?
For 2026, the HSA contribution limit is $4,400 for self-only coverage and $8,750 for family coverage.
What is the minimum deductible for an HSA-qualified HDHP in 2027?
For 2027, the minimum deductible is $1,750 for self-only coverage and $3,500 for family coverage.
What is the maximum out-of-pocket limit for an HSA-qualified HDHP in 2027?
For 2027, the maximum out-of-pocket limit is $8,700 for self-only coverage and $17,400 for family coverage.
Do HSA funds expire at the end of the year?
Generally, no. HSA funds roll over from year to year, so you don’t have to spend your entire balance by December 31.
Can an HSA be used for retirement healthcare expenses?
Yes. HSA funds can remain in the account and be used for qualified medical expenses in the future, including during retirement. Depending on the HSA provider, some accounts may also offer investment options.
Can I contribute to an HSA if I don’t have an HDHP?
Generally, no. You must meet IRS eligibility requirements, which generally include being covered by an eligible high-deductible health plan. Certain changes to HSA eligibility rules may apply, so review the current IRS requirements before contributing.
Learn More About HSAs
Health Savings Accounts can be an important tool for managing healthcare expenses and building long-term financial savings. If you’re considering an HSA for 2027, review your health plan, contribution strategy and eligibility requirements.
For the most current HSA rules and tax information, visit the IRS and review [Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans].
Sidney Federal Credit Union can help you understand your savings options and find the account solutions that fit your financial goals.
