The 2027 HSA limits are $4,500 for self-only coverage and $9,000 for family coverage, according to IRS Revenue Procedure 2026-24. Clients age 55 or older can add a $1,000 catch-up contribution. For federal clients in FEHB or PSHB high deductible health plans (HDHPs), the key step is to subtract the plan's premium pass-through before deciding how much to contribute themselves.
Open season runs November 9 through December 14, 2026, so now is the right time to review HDHP choices and 2027 contribution plans together.
The 2027 HSA Limits at a Glance
The IRS published the 2027 figures in Revenue Procedure 2026-24.
2027 HSA contribution limits
$4,500
Self-only coverage
$9,000
Family coverage
$1,000
Catch-up, age 55 and older
The revenue procedure also sets the 2027 definition of a high deductible health plan:
| 2027 HDHP rule | Self-only / family |
|---|---|
| Minimum annual deductible | $1,750 / $3,500 |
| Maximum out-of-pocket expenses | $8,700 / $17,400 |
| Direct primary care fee cap (monthly) | $150 / $300 |
| Excepted benefit HRA maximum | $2,250 |
The out-of-pocket maximum includes deductibles, copayments and other amounts, but not premiums. The $1,000 catch-up amount is set by statute and is not adjusted for inflation.
How the Pass-Through Changes the Math
FEHB and PSHB HDHPs typically deposit part of the premium into the enrollee's HSA each pay period or month. That premium pass-through is helpful, but it is not extra room. Under IRS rules explained in Publication 969, contributions from all sources, including the employer or plan, count toward the annual limit.
The client's own room is therefore:
2027 limit + catch-up if eligible, minus the plan's pass-through for the year = the most the client can contribute personally.
Each FEHB HDHP sets its own pass-through amount, and it can differ by plan and enrollment type. Use the plan's 2027 brochure for the exact figure, and do not assume last year's amount carries over.
A worked example without plan numbers
Suppose a 57-year-old client has self-only HDHP coverage for all of 2027. The client's total limit is $4,500 plus the $1,000 catch-up, or $5,500. If the plan's brochure shows an annual pass-through of a given amount, the client subtracts that amount from $5,500. The result is the maximum the client should contribute through payroll or directly.
Partial-year and family situations
The limits apply to a full year of HDHP eligibility. Clients who enroll in or leave an HDHP mid-year, change from self-only to family coverage, or become ineligible partway through the year face prorating rules. Publication 969 explains them. These cases deserve a careful calculation rather than a rule of thumb.
Medicare Ends HSA Contributions
Federal clients approaching 65 need special attention. A person enrolled in Medicare can no longer contribute to an HSA, although existing HSA money can still be used for qualified medical expenses.
This matters in two ways:
- Clients still working past 65. If they enroll in Medicare Part A, including automatic Part A when they start Social Security, their HSA contribution eligibility ends.
- Retirees in an FEHB HDHP. An annuitant enrolled in Medicare cannot receive HSA contributions. Some FEHB HDHPs provide a health reimbursement arrangement for members who are not HSA-eligible. The plan brochure explains how that plan handles it.
PSHB adds another layer for postal clients, since most postal annuitants entitled to Medicare Part A must enroll in Part B to keep PSHB coverage. Our upcoming post on PSHB and Medicare covers that rule.
The Direct Primary Care Change
The One Big Beautiful Bill Act, Public Law 119-21, added a new rule to the tax code. A direct primary care service arrangement is not treated as a health plan that disqualifies HSA eligibility, as long as aggregate fees do not exceed $150 per month, or $300 per month if the arrangement covers more than one person. The rule took effect for months beginning after December 31, 2025, and the 2027 amounts remain $150 and $300.
For federal clients who pay a monthly fee to a direct primary care practice, this can allow them to keep contributing to an HSA, provided the fees stay under the cap.
Pairing an HSA With FSAFEDS
Coverage under a general-purpose health care FSA generally makes a person ineligible to contribute to an HSA. FSAFEDS offers a limited expense health care FSA (LEX HCFSA) designed for people in HDHPs with an HSA. It generally covers eligible dental and vision expenses.
FSAFEDS does not roll over from year to year. Clients must re-enroll during open season to have a 2027 account. OPM's plan year 2027 highlights note that FSAFEDS participants will have a choice between a Visa FSA card and paperless reimbursement.
Open Season Questions for HDHP Clients
Use these questions in client reviews before December 14:
- Is the client's current HDHP still the right fit for 2027 premiums and expected care?
- What is the plan's 2027 pass-through, and how much room remains under the 2027 HSA limits?
- Will the client turn 55 in 2027 and qualify for the catch-up?
- Is Medicare enrollment, including Part A, expected in 2027?
- Does the client want a LEX HCFSA alongside the HSA?
- Is a family change, such as a marriage or a child aging off coverage, likely to change the coverage type?
Premium context for 2027
OPM reports that the average FEHB enrollee premium share is rising 10.9% for 2027. Some clients who have never considered an HDHP may look at one for the first time. Advisors should help them weigh lower premiums and HSA tax advantages against a higher deductible and the cash needed to cover it. Our post on 2027 FEHB premiums for advisors has more context.
Common Mistakes to Avoid
Forgetting the pass-through
The most common error is setting payroll contributions to the full 2027 limit without subtracting the plan's deposit. That can create an excess contribution. Publication 969 explains how excess contributions are treated and how to correct them, but it is easier to avoid the problem from the start.
Contributing after Medicare starts
Clients who keep working past 65 and then enroll in Medicare sometimes keep their payroll HSA contributions running. Advisors should coordinate the timing of Medicare enrollment with the HSA contribution schedule.
Missing the FSAFEDS deadline
Because FSAFEDS does not continue automatically, a client who wants a LEX HCFSA in 2027 must elect it during open season. The election does not carry over from 2026.
Assuming the plan is unchanged
FEHB HDHPs can change deductibles, pass-through amounts and benefits from year to year. A client who reviewed their plan last year should still read the 2027 brochure.
Why HSAs Fit Federal Retirement Planning
An HSA can be a useful complement to the TSP and a FERS annuity. Contributions are tax-advantaged, and qualified withdrawals for medical expenses are tax-free under federal law. For clients who can afford to pay current medical costs from cash, an HSA can build a reserve for health care costs in retirement.
The details differ for federal clients because of FEHB pass-throughs, Medicare timing and FSAFEDS options. That is exactly the kind of coordination covered in the FedEd Academy™ live program. Advisors looking for a credential can explore the RFBS℠ designation, and more advisor tools are available in our resources.
The 2027 HSA limits are $4,500 and $9,000, plus $1,000 at 55. For federal HDHP clients, the real number is what is left after the plan's pass-through. Help clients run that calculation before open season ends on December 14.
Frequently asked questions
What are the 2027 HSA contribution limits?
Under IRS Revenue Procedure 2026-24, the 2027 HSA contribution limit is $4,500 for self-only HDHP coverage and $9,000 for family coverage. People age 55 or older can contribute an additional $1,000 catch-up contribution.
What is the minimum deductible for an HDHP in 2027?
For 2027, a high deductible health plan must have a deductible of at least $1,750 for self-only coverage or $3,500 for family coverage, and out-of-pocket expenses cannot exceed $8,700 for self-only or $17,400 for family coverage.
Does the FEHB premium pass-through count toward the HSA limit?
Yes. Under IRS rules, contributions from all sources count toward the annual HSA limit, including amounts the health plan deposits for the enrollee. Clients should subtract the plan's pass-through from the limit before setting their own contributions.
Can a federal client with Medicare contribute to an HSA?
No. Once a person is enrolled in Medicare, they can no longer make HSA contributions, although they can still spend existing HSA funds on qualified medical expenses.
What changed with direct primary care for HSAs?
Public Law 119-21 provides that a direct primary care service arrangement is not treated as a health plan that disqualifies HSA eligibility if fees do not exceed $150 per month, or $300 for an arrangement covering more than one person. Those are also the 2027 amounts.
