IRS Releases 2026 Limits for HSAs and Excepted Benefit HRAs

By Evan Walters, Samuel Hamer, Edward Froelich, Michael Scarduzio and Matthew J. Blaney on June 10, 2025

Posted In Employee Benefits, Health and Welfare Plans

On May 19, 2025, the Internal Revenue Service (IRS) released Internal Revenue Bulletin 2025-21. It includes Revenue Procedure 2025-19, which provides the 2026 inflation-adjusted amounts for health savings accounts (HSAs) as determined under Code § 223, as well as the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) under Code § 54.9831-1(c)(3)(viii). Revenue Procedure 2025-19 is effective for HSAs for the 2026 calendar year and for excepted benefit HRAs beginning in 2026.

Learn more about other new IRS guidance in this Weekly IRS Roundup published by McDermott’s Tax Group.

Tags: excepted benefit health reimbursement arrangements, health savings accounts, HRAs, HSAs, Internal Revenue Bulletin 2025-21, Internal Revenue Service, IRS, Revenue Procedure 2025-19

Evan Walters
Evan Walters focuses his practice on US and international taxation. He has experience across a wide range of issues involving corporate and partnership taxation. Read Evan Walters' full bio.

Samuel Hamer
Samuel (Sam) F. Hamer focuses his practice on US and international tax matters. Read Samuel Hamer's full bio.

Edward Froelich
Edward L. Froelich represents domestic and foreign public corporations, privately held companies, partnerships, trusts and individuals across the spectrum of federal tax controversies, including audits, trials and appeals. Ed’s clients include businesses, business owners and investors with operations and interests in the financial services, technology, real estate, healthcare and other industries. Read Edward Froelich's full bio.

Michael Scarduzio
Michael J. Scarduzio focuses his practice on US and international tax matters, particularly civil and criminal tax litigation. From audit to litigation, he represents taxpayers in all phases of tax controversy, including novel issues of first impression such as financial hedging transactions using a captive insurer, US tax implications of a foreign master-feeder fund’s investment activities and matters arising under Internal Revenue Code (IRC) Sections 7216 and 7212(a). Read Michael Scarduzio's full bio.