IRS gives guidance on HSAs under OBBBA

Kent Nishimura/Bloomberg

The Treasury and the Internal Revenue Service have issued Notice 2026-05, providing guidance on new tax benefits for health savings account participants under the recent tax reform law.

The One Big Beautiful Bill Act expands access to HSAs by:

• Making permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.
• Treating bronze and catastrophic plans as HDHPs as of Jan. 1, 2026. Bronze and catastrophic plans available through an exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. People enrolled in these plans can contribute to HSAs, which they generally have not been able to do. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an exchange to qualify for the relief.
• An otherwise eligible individual in certain direct primary care service arrangements can, beginning next Jan. 1, contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.

Notice 2026-05 details each of these changes.
The Treasury and the IRS are looking for feedback on all aspects of this guidance by March 6, 2026. Commenters are encouraged to use the federal e-rulemaking portal to submit comments online (indicate "IRS-2025-0335"). Paper submissions should be sent to: IRS, CC:PA:01:PR (Notice 2026-05), Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, D.C., 20044.

for more information, see the IRS's One, Big, Beautiful Bill provisions page.