The Internal Revenue Service (IRS) has released Revenue Procedure 2025-19, providing the inflation-adjusted figures for Health Savings Accounts (HSAs) and excepted benefit Health Reimbursement Arrangements (HRAs) applicable for calendar year 2026 and plan years beginning in 2026, respectively. This guidance is essential for tax practitioners advising clients on health and welfare benefit plans and individual tax planning involving HSAs.

Purpose and Statutory Authority

Revenue procedures like 2025-19 serve to formally announce the annual cost-of-living adjustments mandated by specific sections of the Internal Revenue Code and related regulations. This particular procedure addresses adjustments required under § 223 of the Internal Revenue Code for HSAs and § 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations for excepted benefit HRAs. These sections require that certain dollar limitations and definitions be adjusted annually based on inflation, ensuring that the amounts remain relevant over time.

2026 Inflation Adjustments

HSA Adjustments (Calendar Year 2026)

The core components of the HSA framework adjusted by this revenue procedure for calendar year 2026 include the annual contribution limitations and the definition of a high deductible health plan (HDHP).

Annual Contribution Limitation:
- For an individual with self-only coverage under an HDHP, the annual limitation on deductions under § 223(b)(2)(A) is adjusted to $4,400 for calendar year 2026.
- For an individual with family coverage under an HDHP, the annual limitation on deductions under § 223(b)(2)(B) is adjusted to $8,750 for calendar year 2026.
High Deductible Health Plan (HDHP) Definition: The definition of an HDHP, as provided under § 223(c)(2)(A), is crucial for determining eligibility to contribute to an HSA. For calendar year 2026, a health plan qualifies as an HDHP if it meets the following criteria:
- The annual deductible must be not less than $1,700 for self-only coverage.
- The annual deductible must be not less than $3,400 for family coverage.
- The annual out-of-pocket expenses (which include deductibles, co-payments, and other amounts, but specifically exclude premiums) cannot exceed $8,500 for self-only coverage.
- The annual out-of-pocket expenses cannot exceed $17,000 for family coverage.

Excepted Benefit HRA Adjustment (Plan Years Beginning in 2026)

Revenue Procedure 2025-19 also provides the adjustment for the maximum amount that may be made newly available in a plan year for an excepted benefit HRA.

For plan years beginning in 2026, the maximum amount allowed for an excepted benefit HRA under § 54.9831-1(c)(3)(viii) is $2,200. The revenue procedure directs practitioners to § 54.9831-1(c)(3)(viii)(B)(1) for further details regarding the calculation methodology of this amount.

Effective Date

The adjustments provided in Revenue Procedure 2025-19 are effective for HSAs for calendar year 2026 and for excepted benefit HRAs for plan years beginning in 2026.

Prepared with assistance from NotebookLM.