Experts share five little-known facts to help account holders make the most of expanded HSA access and rising contribution caps
Health savings accounts continue to gain momentum across the United States, with the number of HSAs surpassing 41 million and total deposits nearing $174 billion.
Now, with the Internal Revenue Service announcing updated contribution limits for 2027, more individuals and families stand to benefit from the tax advantages these accounts offer.
What Are the New 2027 Limits?
According to the IRS announcement made on May 29th, individual HSA holders will be able to contribute up to $4,500 in 2027, a $100 increase from the 2026 cap of $4,400. Family contributions will rise to $9,000, up from $8,750 the previous year.
Minimum deductibles and out-of-pocket maximums for high-deductible health plans (HDHPs) will also increase in 2027.
Before opening or contributing to an HSA, account holders are advised to confirm with their HR team or health plan that their coverage is compatible and eligible for HSA enrollment.
Five Things You May Not Know About HSA Contributions
To help consumers navigate the updated rules, the experts at HSA Store have outlined five lesser-known facts about HSA contributions.
1. You’re not the only one who can contribute. Beyond the account holder, an employer or even a family member can make contributions to an eligible HSA, and all of those contributions can be deducted from the account holder’s taxable income.
2. Contributions can be made right up to tax day. HSA contributions for a given plan year don’t have to be made by December 31st. For example, 2026 HSA contributions can be made as late as April 15, 2027, prior to filing taxes. Account holders should check with their HSA administrator to confirm this option is supported.
3. ACA Marketplace enrollees may now qualify. As of January 1st, 2026, individuals enrolled in Bronze or Catastrophic health plans through the ACA Marketplace are eligible to contribute to an HSA, regardless of whether their plan meets the traditional HDHP definition. This rule change is designed to expand HSA compatibility to a broader population.
4. Pre-tax payroll contributions carry an extra tax benefit. In addition to savings on state and federal taxes (except in California and New Jersey at the state level), pre-tax HSA contributions through an employer effectively provide an additional 7.65% discount because employment taxes are deducted at the time of contribution. Contributions made outside of payroll can still be deducted when taxes are filed.
5. The “Last Month Rule” and catch-up contributions can boost your savings. Under the Last Month Rule, account holders who are eligible as of December 1st may contribute the full annual amount for that year but must remain eligible for the following 12 months or risk fines and penalties. Separately, anyone aged 55 or older can contribute an additional $1,000 per year as a catch-up contribution, further reducing their taxable income.
A Broader Impact on Financial and Healthcare Planning
Itamar Romanini, vice president and general manager of HSA Store, welcomed the changes: “It’s exciting to see expanded HSA access and continued increases in contribution limits for these tax-advantaged accounts for 2027. We believe the potential impact of HSAs as a financial tool will increase exponentially as more individuals and families are now able to enroll in these accounts, and as account holders can set aside more of their taxable income to pay for healthcare expenses throughout the year. It’s a win-win for your current and future financial health.”
Beyond reducing taxable income, HSA funds can be used on a wide range of everyday healthcare products, including allergy medications, over-the-counter pain and fever reducers, menstrual care products, and first-aid supplies.
