Frequently Asked Questions
What are the 2026 HSA contribution limits?
Per IRS Rev. Proc. 2025-19, the 2026 limits are $4,400 for self-only HDHP coverage and $8,750 for family coverage, with an additional $1,000 catch-up contribution at age 55+. You must be enrolled in an HSA-eligible HDHP, not enrolled in Medicare, and not claimed as a dependent.
What's the triple tax advantage of an HSA?
Contributions are tax-deductible (or pre-tax via payroll), growth is tax-free, and withdrawals for qualified medical expenses are tax-free. After age 65, non-medical withdrawals are taxed as ordinary income (no 20% penalty), making the HSA function like a Traditional IRA - only with extra tax-free flexibility for medical costs.
Should I invest my HSA or keep it in cash?
If you can pay current medical expenses out of pocket, invest your HSA for long-term growth. Devenir's recent HSA market reports show invested HSAs average roughly 5x the balance of non-invested accounts - a powerful retirement tool when you let contributions compound for 20+ years.
What qualifies as an HSA-eligible HDHP in 2026?
For 2026, the IRS defines an HSA-eligible HDHP as: self-only minimum deductible $1,700 (max OOP $8,500) or family minimum deductible $3,400 (max OOP $17,000). The plan must not cover anything before the deductible except preventive care, telehealth, and certain first-dollar items the IRS permits.
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