HSA News for April 27, 2026
HSA news is compiled by Mr. HSA, Roy Ramthun.
News from Washington
Sen. Marshall Introduces Bill to Expand HSA Eligibility and Uses
Sen. Roger Marshall (R-KS) introduced new legislation which would expand HSA eligibility to people covered by health plans with lower deductibles and individuals enrolled in Medicare, Medicaid, or CHIP. The bill would permit HSA owners to use their funds to cover insurance premiums, as well as fees for healthcare sharing ministries.
Compliance Corner
Is There an Age Limit to HSA Contributions? Officially, No. Practically, Yes.
The federal tax code does not set an upper age limit on contributions to a Health Savings Account. But other provisions in federal benefits and tax code create a practical limit that applies to most prudent Americans. Most (but not all) seniors are disqualified from continuing to make additional HSA contributions when they turn age 65.
Yes, Employers Can Retrieve Funds if the Employee Was Never HSA-eligible
Our company contributed $1,000 up-front to the HSAs of all participating employees. It turns out that one employee enrolled in the HSA-qualified plan was not HSA-eligible. Can we recapture the contribution? Yes. Although employer contributions vest immediately, in specific circumstances employers can claw back a deposit. This is one such case.
HSA Studies & Analysis
HSA Assets Hit $174B as Investment Rises
HSAs held nearly $174 billion at the end of 2025, a sharp rise from 2024 that underscores their growing role not only as a tool for paying medical bills, but increasingly as a vehicle for long-term savings for retirement. The total value of HSA assets climbed 19% over the past year while the number of accounts reached 41.7 million, a 6% increase from 2024.
2025 Year-End Devenir HSA Research Report
At year-end 2025, HSAs held nearly $174 billion across 41.7 million accounts. HSA investment assets climbed to nearly $85 billion by the end of 2025, up 33% from a year earlier. Devenir projects the HSA market will surpass 49 million accounts and $234 billion in total assets by the end of 2028.
Market Trends
Matching HSA Contributions
A small, but growing, percentage of employers are structuring their contribution to employees' HSAs as matching employee contributions. Providing an employer match has long been considered a great way to encourage employee participation in retirement plans but leveraging an employer match with other benefits has been slow to take hold.
HSA Rules Just Expanded for the Self-Employed: What Changed January 1
Self-employed HSA rules changed more this year than they have in two decades, and the shift arrives with direct benefits for freelancers. Starting January 1, 2026, Bronze and Catastrophic plans now qualify, direct primary care arrangements no longer disqualify, and telehealth coverage is now permanent. For solopreneurs, the math just got better.
HSAs & Retirement
HSAs: Saving for Health Care or Investing for Retirement?
HSAs were created in 2003 to help consumers manage rising health care costs. The accounts allow individuals to save money tax-free for qualified medical expenses, often with employer contributions. After age 65, funds can be withdrawn for non-medical purposes without penalty, making HSAs function in some ways like a retirement account.
Maxed Out Your IRA and Don't Have a 401(k)? Here's Another Great Retirement Savings Option for You.
If you're looking to up your retirement savings game even more, you may be inclined to look outside of an IRA. The good news is that there's another account you can look at for building a retirement nest egg. It may not seem like an appropriate choice at first. But when you dig deeper, you'll see why it could be a great fit.
Inflation Is Draining Older Workers’ Savings — and Upending Retirement Plans
Most older workers aren’t stepping into retirement with confidence. The concerns show that older workers are attempting to plan for retirement in an environment where costs and risks feel volatile. Given the market uncertainty, many are rethinking their approach to retirement planning in their 50s.
7 Brutal Truths About Caregiving Costs That Are Bankrupting American Families
New research shows that taking care of a parent, spouse, or child with serious needs has crossed from “stressful family obligation” into “full-blown financial catastrophe.” Roughly 1 in 4 American adults is now doing it, and most of them are paying for the privilege out of their own savings. Here’s what you need to know before it’s your turn.
Maximizing Your HSA
Expanded HSA Eligibility Creates Need for Employee Education: 4 Critical Tips
Thanks to recent legislative changes that make more people eligible to enroll in HSAs, employers and HR teams have a new opportunity — and need — to expand HSA eligibility education to their teams. Here are four things HR teams and employers should reinforce about HSAs to help employees maximize their account during the remainder of the year.
5 Misunderstood HSA Facts
Health Savings Accounts have become increasingly popular, but they often come with misconceptions as well. To help your employees make informed decisions, let’s debunk some common HSA myths and shed light on the HSA facts that truly matter. Here are HSA facts that are frequently misunderstood.