HSA Eligibility and Contribution Limits for 2025 and 2026

• Dan O'Donnell
• February 24, 2025
• 6 min read

HSA eligibility determines whether you can make tax-favored contributions to a health savings account. Having a high deductible alone is not enough: your coverage and other circumstances must meet IRS requirements. The rules for adding money are different from the rules for spending an existing HSA balance.

Who can contribute to an HSA?

Generally, you must have qualifying high-deductible health plan coverage on the first day of the month, have no disqualifying additional coverage, not be enrolled in Medicare, and not be eligible to be claimed as someone else’s tax dependent. A general-purpose health FSA, including a spouse’s FSA that can reimburse your expenses, usually prevents contributions. Certain limited-purpose or post-deductible plans are compatible.

2025 and 2026 HSA limits

Employer contributions count toward your annual HSA limit. Eligible individuals age 55 or older can make an additional $1,000 contribution. Each eligible spouse’s catch-up contribution must go into that spouse’s own HSA. The family limit is generally shared by eligible spouses.

Sources: IRS Publication 969 and IRS Publication 15-B.

What changed for 2026?

Beginning January 1, 2026, qualifying bronze and catastrophic plans available through an Exchange are treated as HDHPs for HSA purposes even if they do not satisfy the ordinary deductible or out-of-pocket limits above. New rules also address certain direct primary care arrangements. Separate legislation made the telehealth safe harbor permanent for plan years beginning after 2024.

These provisions do not eliminate other HSA eligibility conditions. Confirm your specific coverage under the IRS guidance on expanded HSA eligibility.

Partial-year eligibility and deadlines

Your limit is generally calculated month by month. The last-month rule may allow a larger contribution if you qualify, but it includes a testing period; failing that period can trigger income inclusion and an additional tax. Medicare enrollment, including retroactive coverage, can affect your allowable contributions.

The normal deadline for 2025 HSA contributions was April 15, 2026. An ordinary tax filing extension does not extend the HSA contribution deadline.

How the tax benefits work

Eligible personal contributions may be deductible; employer and pretax payroll contributions generally are excluded from income and cannot be deducted again. Earnings accumulate tax-free, and distributions for eligible unreimbursed medical expenses can be tax-free. Expenses generally must be incurred after the HSA was established.

Nonqualified withdrawals are taxable and generally carry an additional 20% tax before age 65, unless an exception applies. After age 65, the additional tax generally ends, but nonmedical withdrawals remain taxable. Use Form 8889 to report contributions and distributions.

Coordinate other medical benefits

You cannot also claim an HSA-reimbursed cost as a medical expense deduction. Premiums usually are not qualified HSA expenses, although exceptions include eligible COBRA premiums. Our health insurance tax planning guide explains how to coordinate HSAs, FSAs, and deductions.