IRS Issues Guidance on HSAs
IRS issued IRS Notice 2026-05 on December 9, 2025, provides guidance on new tax benefits for Health Savings Account (HSA) participants under the One Big Beautiful Bill (OBBB).
Key changes include:
Telehealth Services: The ability to receive telehealth and remote care services before meeting the high-deductible health plan (HDHP) deductible is now permanent, effective for plan years beginning on or after January 1, 2025.
Bronze and Catastrophic Plans: Bronze and catastrophic plans available through an Exchange will be treated as HSA-compatible, regardless of whether they satisfy the general definition of an HDHP. It is effective for months after December 31,2025.
Direct Primary Care Service Arrangements: Individuals enrolled in certain direct primary care service arrangements may contribute to an HSA and use HSA funds tax-free to pay for periodic DPC fees.
It is effective for months after December 31, 2025.
These changes aim to expand access to HSAs, allowing more individuals to save and pay for healthcare costs through tax-free accounts. The IRS invites comments on this notice by March 6, 2026.
For a copy of the IRS Notice 2026-05, please click on the link below:
Expanded Availability of Health Savings Accounts under the One, Big, Beautiful Bill Act (OBBBA)