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On February 23, 2026, the Congressional Research Service (CRS) released its updated report, Health Savings Accounts (HSAs). HSAs are tax-favored individual accounts that can be used to accumulate funds to cover unreimbursed medical expenses (e.g., deductibles, copayments, coinsurance and other services not covered by insurance). The updated report incorporates HSA-related changes in the fiscal year 2025 budget reconciliation law, referred to as the One Big Beautiful Bill Act.

The report summarizes the principal rules governing HSAs, including: 1) eligibility; 2) qualifying health insurance; 3) contributions; 4) withdrawals; and 5) tax advantages. In addition, the report provides information regarding HSA data limitations and current research data findings on High Deductible Health Plans (HDHP) enrollment and HSA utilization trends.  

In 2026, the maximum annual contribution limit is $4,400 for individuals with self-only coverage and $8,750 for those with family coverage. The applicable annual limits apply to total contributions to the HSA from all sources (i.e., from individuals and employers). These amounts are adjusted for inflation annually (rounded to the nearest $50). 

In addition, those age 55 and older may contribute an additional catch-up contribution of $1,000 per year, which is not annually indexed for inflation. 

The tax advantages of HSAs include: 

• Individual contributions are tax deductible unless made through a cafeteria plan.
• Employer contributions and individual contributions made through a cafeteria plan are excluded from taxable income and from Social Security, Medicare, and unemployment insurance taxes.
• Account earnings are tax exempt.
• Withdrawals are not taxed if used for qualified medical expenses. 

Individuals may make tax-free HSA withdrawals to pay for the qualified medical expenses for the account holder, the account holder’s spouse, or the account holder’s dependents. The qualified individuals who contribute to their HSAs may claim a deduction on their federal income tax return to reduce their tax burden. Generally, individuals are penalized for withdrawing funds for nonqualified medical expenses and for making contributions above the annual HSA limit. 

The report is available here.