HSA Contribution Limits (2026)

Your HSA goes with you when you lose your job. Unlike a flexible spending account, it does not belong to your employer and it has no use-it-or-lose-it deadline. The balance is yours indefinitely.

For 2026, the IRS contribution limit is $4,400 for self-only HDHP coverage and $8,750 for family coverage, per IRS Revenue Procedure 2025-19. If you are 55 or older, you can contribute an additional $1,000 catch-up above either limit.

Continuing to contribute after a layoff requires maintaining qualified high-deductible health plan (HDHP) coverage. If you elect COBRA and stay on the same HDHP, you remain HSA-eligible and can continue contributing. If you switch to a lower-deductible plan or join a non-HDHP Marketplace plan, you lose HSA eligibility from that date forward.

The contribution limit is pro-rated if your eligibility changes mid-year. If you were on an HDHP for six months and then switched, your annual limit is half the full amount. The rule works in both directions: if you enroll in a qualifying plan after your layoff, your eligibility period determines what you can contribute for the year.

Funds in your HSA can be invested and grow tax-free. Withdrawals for qualified medical expenses are tax-free at any age. After age 65, withdrawals for any purpose are taxed as ordinary income with no penalty. Before age 65, non-medical withdrawals carry ordinary income tax plus a 20% penalty.

During a gap in employment when your income may be low, every dollar contributed to your HSA has high marginal value. It is the only account that gives you pretax contributions, tax-free growth, and tax-free withdrawals for medical expenses.