IRS Issues New Guidance on Health Savings Accounts Under Recent Tax Reform
The Treasury and the Internal Revenue Service (IRS) have released Notice 2026-05, which provides new guidance on tax benefits for Health Savings Account (HSA) participants following the enactment of the One Big Beautiful Bill Act. This legislation, signed by President Trump, aims to expand access to HSAs. Key changes include the permanent allowance for telehealth and remote care services before meeting the high-deductible health plan (HDHP) deductible, effective from January 1, 2025. Additionally, bronze and catastrophic plans will be treated as HDHPs starting January 1, 2026, allowing individuals enrolled in these plans to contribute to HSAs. The guidance also clarifies that these plans do not need to be purchased through an exchange to qualify. Furthermore, individuals in direct primary care service arrangements can contribute to HSAs and use funds tax-free for periodic fees starting next year. 
