Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
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IRS Releases Guidance on HSA Expansion; Comments Due March 6
Dec 10, 2025, 06:00
by
Jenny Gartman
The Department of the Treasury and the Internal Revenue Service (IRS) issued Notice 2026-05 providing guidance on new tax benefits for health savings account (HSA) participants under the One, Big, Beautiful Bill Act (OBBBA). These changes expand HSA eligibility, which allows more people to save and to pay for health care costs through HSAs.
The OBBB expands access to HSAs by making more individuals eligible to contribute. Changes include:
- Telehealth and Remote Care Services: Made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan (HDHP) deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.
- Bronze and Catastrophic Plans Treated as HDHPs: Made bronze and catastrophic plans available through an Exchange HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an Exchange to qualify for the new relief.
- Direct Primary Care Service Arrangements: Made individuals enrolled in certain direct primary care service arrangements eligible to contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic direct primary care fees.
Comments are due March 6, 2026.