At Optimum HR, we’re committed to helping employers stay informed and prepared when it comes to employee benefits. As a Professional Employer Organization (PEO), we keep a close watch on regulatory changes that impact your workforce and bottom line. The IRS has officially released the 2026 contribution limits for Health Savings Accounts (HSAs)—and while the increases are modest, they present a valuable opportunity to maximize your healthcare strategy.
Employees will be able to set aside slightly more in their HSAs starting in 2026:
These tax-advantaged accounts continue to be a powerful tool for managing both short- and long-term healthcare expenses.
To contribute to an HSA, employees must be enrolled in a High-Deductible Health Plan (HDHP). The updated thresholds for 2026 are:
In addition, the excepted-benefit Health Reimbursement Arrangement (HRA) limit will increase to $2,200, giving employers more flexibility to offer supplemental benefits.
Though the increases are relatively small—reflecting a slowdown in inflation—they still represent a key opportunity to boost employee savings. HSAs continue to gain popularity thanks to their triple tax advantage:
According to SHRM, 60% of employers currently offer HSAs, with growing employee participation and average balances projected to reach $5,000 by the end of 2024. Notably, Gen X is leading in contributions, while Millennials are showing strong, consistent savings behavior.
With open enrollment just around the corner, now is the perfect time to begin educating employees on the benefits of HSAs. A proactive approach can lead to more informed healthcare decisions, increased participation, and long-term financial wellness for your workforce.
At Optimum HR, we’re here to help you make the most of these updates—whether it’s refining your benefits offering, educating your employees, or integrating these changes into your HR strategy. Together, let’s turn 2026 into a year of smarter healthcare savings and stronger employee engagement.
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