What are the current FSA, HSA and HDHP limits?

The IRS establishes annual limits for healthcare Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), and HSA-qualified High Deductible Health Plans (HDHPs).

These limits influence how employees save for healthcare expenses, how employers structure their benefits programs, and what information should be communicated during open enrollment.

2027 HSA Contribution Limits

A Health Savings Account allows eligible individuals to save money on a tax-advantaged basis for qualified medical expenses.

For calendar year 2027:

• Self-only coverage: $4,500
• Family coverage: $9,000
• Catch-up contribution for eligible individuals age 55 or older: An additional $1,000

These amounts include contributions from both employees and employers.

The self-only contribution limit increased by $100 from 2026, while the family limit increased by $250.

An individual's actual contribution limit may vary based on HSA eligibility, coverage changes, and the number of eligible months during the calendar year.

2027 HDHP Requirements

Under the traditional HSA qualification rules, a High Deductible Health Plan must meet specific minimum deductible and maximum out-of-pocket requirements.

Minimum annual deductible:

• Self-only coverage: $1,750
• Family coverage: $3,500

Maximum annual out-of-pocket expenses:

• Self-only coverage: $8,700
• Family coverage: $17,400

The out-of-pocket limits generally include deductibles, copayments, and coinsurance for covered in-network services, but not insurance premiums.

It's important to remember that a health plan with a high deductible isn't automatically HSA-qualified. Plan design and other eligibility requirements must also be considered.

2027 Healthcare FSA Limits

A healthcare Flexible Spending Account allows employees to set aside pre-tax dollars for eligible medical expenses.

The IRS typically announces healthcare FSA limits later in the year than HSA and HDHP limits.

As of October 2026, the official 2027 healthcare FSA limits have not yet been confirmed.

The published limits for plan years beginning in 2026 are:

• Maximum employee election: $3,400
• Maximum permitted carryover: $680, if the employer adopts the carryover provision

The permitted carryover is optional. Employers may instead offer an eligible grace period, but healthcare FSAs generally cannot offer both features.

Employers preparing for 2027 should confirm the new limits once the IRS publishes them and update enrollment materials and payroll settings accordingly.

What should employers consider for 2027?

Annual changes to contribution limits and plan requirements can influence several benefits decisions.

Employee contributions

Higher HSA contribution limits provide eligible employees with additional opportunities to save for healthcare expenses using tax-advantaged funds.

Employer contribution strategies

Employers that contribute to employee HSAs should consider how their contributions fit within the combined annual limits and support their overall benefits objectives.

Health plan design

Changes to HDHP deductible and out-of-pocket requirements may require a review of existing HSA-qualified plans.

Open enrollment communications

Employees need accurate information about contribution limits, eligibility, and how their benefits can help them manage healthcare expenses.

Payroll and administration

Employers should coordinate with payroll providers, carriers, and benefits administrators to ensure applicable annual limits are reflected correctly.

How does MPOWR help?

At MPOWR, we help employers understand how annual IRS adjustments affect their benefits programs and what changes may be necessary.

That includes reviewing plan designs, evaluating contribution strategies, and coordinating updates with carriers, administrators, and payroll providers.

We also help employers communicate these changes in a way that makes sense to employees, particularly when rising healthcare costs make financial planning increasingly important.

The numbers may change each year, but their significance goes beyond regulatory compliance. They influence how employees prepare for healthcare expenses and how employers can support them through thoughtful benefits planning.