What's New in 2026 for HSAs and FSAs: A Simple Guide
2026 brings some of the biggest changes to HSAs and FSAs in years — expanded eligibility, higher limits, and new rules that affect your savings strategy.
2026 brings some of the biggest changes to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) in years — and they affect who can qualify, how much you can save, and how you should plan. Whether you're picking your benefits this year or planning future savings strategy, you need to know these updates.
The Big News: More People Can Now Use HSAs
In past years, only traditional high-deductible health plans (HDHPs) could be paired with an HSA. But new IRS guidance in 2026 has expanded eligibility in two major ways:
- Bronze and Catastrophic plans now count as HSA-compatible — even if you bought them on the individual or Marketplace exchange
- Telehealth and direct primary care services now work with HSAs even before hitting your deductible
This is a game changer for people who previously couldn't contribute to HSAs but bought lower-premium plans. If you have a Marketplace Bronze or Catastrophic plan, you may now be eligible to open an HSA.
2026 HSA Contribution Limits
For 2026, the IRS has raised HSA contribution limits as part of its annual inflation adjustment:
- $4,400 if you have self-only coverage (up from $4,300 in 2025)
- $8,750 if you have family coverage (up from $8,550 in 2025)
- +$1,000 catch-up contribution if you're age 55 or older
These limits include both your contributions and any your employer makes. If your employer contributes $500, you can only contribute up to $3,900 (self) or $8,250 (family) yourself.
What Counts as an Eligible Health Plan in 2026?
To contribute to an HSA, you still need a qualifying plan — but the definition is broader now:
- Traditional HDHPs (high-deductible health plans) — same as before
- ACA Bronze and Catastrophic plans — newly eligible as of January 1, 2026
- Plans that cover telehealth or remote care pre-deductible under the new IRS safe harbor
- Direct primary care service arrangements that meet IRS rules
This expansion is part of IRS Notice 2026-05 guidance under the 'One Big Beautiful Bill Act.' If you're still unsure whether your plan qualifies, use our eligibility checklist to confirm.
2026 FSA Rules & Limits
For 2026, the IRS also increased what you can set aside in an FSA:
- $3,400 maximum healthcare FSA contribution (up from $3,300 in 2025)
- $680 carryover allowed into the next plan year (up from $660 in 2025)
- $7,500 dependent care FSA limit per household (significantly up from $5,000)
Remember: employers choose whether to offer carryover OR a grace period — not both. The $680 carryover is the maximum allowed, but your employer may offer less or none at all. Check your plan documents.
Why These Changes Matter
HSAs reach more people: In prior years, ACA Bronze and Catastrophic plans were usually not HDHP-eligible — meaning their holders couldn't use HSAs. Now they can, expanding access to HSAs for many individuals and families who buy coverage on the Marketplace.
You can save more tax-free: Higher contribution limits give you more room to shelter earnings from tax and build long-term savings. The HSA's triple-tax advantage (tax-deductible contributions, tax-free growth, tax-free withdrawals for medical) makes this one of the most powerful savings vehicles available.
FSA planning becomes slightly easier: Increased carryover limits help reduce year-end forfeitures — but you still need to know your employer's specific plan rules to avoid losing money.
What 2026 Means for You: Real Examples
Example 1: Marketplace Buyer
If you buy an ACA Bronze plan with low premiums on Healthcare.gov or your state exchange, you can now open and fund an HSA — something that was not possible in prior years for many people. This combines the lower monthly costs of Bronze plans with the tax advantages of HSAs.
Example 2: Telehealth-First User
If your plan lets you get telehealth without hitting your deductible (common in many employer plans and Marketplace plans), that no longer disqualifies you from HSA eligibility. Previously, this pre-deductible coverage could make your plan ineligible.
Example 3: Dependent Care Saver
If you use a dependent care FSA for daycare, preschool, or after-school care, you can now contribute up to $7,500 in pre-tax dollars in 2026 — a significant increase from the previous $5,000 limit. For families with childcare costs, this means substantially more tax savings.
How This Changes Your Planning Strategy
For HSAs
- Check whether your plan (especially Marketplace Bronze/Catastrophic) is now HSA-eligible
- Maximize before-tax savings up to the new 2026 limits
- Think long term — HSAs are both a retirement savings tool AND a health spending account
- Consider paying current medical expenses out-of-pocket and letting HSA funds grow
For FSAs
- Decide contributions conservatively — plan for carryovers, not chance
- Check your employer's specific grace period or carryover policy
- Dependent care FSAs should be reevaluated with the higher $7,500 limit
- Track spending throughout the year to avoid year-end scrambles
Frequently Asked Questions
What's the biggest eligibility change for HSAs in 2026?
Starting January 1, 2026, Bronze and Catastrophic health plans are now treated as HSA-compatible, which greatly expands who can open and fund an HSA. Additionally, telehealth and direct primary care arrangements are now explicitly compatible with HSA rules.
How much can I contribute to an HSA in 2026?
You can contribute up to $4,400 for self-only coverage or $8,750 for family coverage, plus a $1,000 catch-up contribution if you're 55 or older. These limits include any employer contributions.
Did FSA contribution limits change for 2026?
Yes — the healthcare FSA limit increased to $3,400 (up from $3,300), and up to $680 of unused funds may carry over if your employer allows it. The dependent care FSA limit increased significantly to $7,500 per household.
Check if you're eligible for an HSA under the new 2026 rules
This article is for educational purposes only and does not constitute tax, legal, or financial advice. IRS rules and contribution limits are subject to change. Always verify current rules and consult with qualified professionals for guidance specific to your situation.
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