Compliance Stuff

The long-awaited health savings account (HSA) and high-deductible health plan (HDHP) figures for 2027 have been announced. Employers have been waiting, as the announcement usually comes in early May. The annual limit on HSA contributions for self-only coverage in 2027 will be $4,500, a 2.3% increase from the $4,400 limit in 2026, the IRS announced May 29 . F or family coverage, the HSA contribution limit will jump to $9,000 next year, up 2.9% from $8,750 in 2026. Meanwhile, for 2027, an HDHP must have a deductible of at least $1,750 for self-only coverage, up from $1,700 in 2026, or $3,500 for family coverage, up from $3,400 in 2026. Annual out-of-pocket expense maximums (deductibles, co-payments, and other amounts, but not premiums) cannot exceed $8,700 for self-only coverage in 2027, up from $8,500 in 2026, or $17,400 for family coverage, up from $17,000 in 2026.  The IRS also announced that the excepted-benefit health reimbursement arrangement limit will be $2,250, up from $2,20...

Takeaways The IRS ended 2025 transition relief so payroll systems, reporting workflows and workforce policies should be fully operational in 2026 for information returns, benefit plan operation, immigration compliance pressure, and workforce policy impacts. Immigration and benefits compliance costs rise in 2026, driven by new OBBBA mandated immigration fees, heightened worksite enforcement expectations and benefit plan updates. OBBBA provisions continue phasing in through 2028; employers should engage counsel and vendors proactively to manage compliance risk and minimize disruption. Related links OBBBA’s Tips & Overtime Tax Break: Reclassification Considerations, Reporting Requirements, Industry Impact + More IRS Guidance on Claiming the New Tax Deduction for Tips and Overtime Pay IRS 2025 Penalty Relief — A Break for Employers Under OBBBA’s Tax Reporting Rules New Tax-Advantaged Savings Accounts for Children: Trump Accounts Expected to Go Live in 2026 Federal OBBBA Roundup: What E...

Overview The world of health benefits is constantly evolving. Recent policy shifts and legislative developments are expected to impact the economic landscape and have significant implications for employer plan sponsors, insurers, third-party administrators (TPAs), and individuals covered by employer-sponsored health plans. This article provides an overview of the current landscape, highlighting key updates and strategic considerations for navigating these changes. In Depth Recent legislative updates Telehealth HDHP safe harbor:   Retroactive to January 1, 2025, high-deductible health plans (HDHPs) may continue to cover telehealth and other remote care services without making participants ineligible for health savings account (HSA) contributions. Section 1557 and gender-affirming care:   Federal rules may soon reduce healthcare nondiscrimination protections that apply to gender-affirming care. State policies vary widely. Some require coverage while others restrict it, dependin...

Employees will be able to sock away more money in their health savings accounts (HSAs) next year, thanks to rising inflation. The annual limit on HSA contributions for self-only coverage in 2025 will be $4,300, a 3.6 percent increase from the $4,150 limit in 2024,  the IRS announced May 9 . For family coverage, the HSA contribution limit will jump to $8,550, up 3 percent from $8,300 in 2024. The jump in the contribution limits is significantly less than the  roughly 7 percent increase seen from 2023 to 2024 . The IRS did not yet release the 2025 catch-up contribution for savers age 55 and older. It currently stands at $1,000 for 2024, unchanged from 2023. Meanwhile, for 2025, a high-deductible health plan (HDHP) must have a deductible of at least $1,650 for self-only coverage, up from $1,600 in 2024, or $3,300 for family coverage, up from $3,200, the IRS noted. Annual out-of-pocket expense maximums (deductibles, co-payments and other amounts, but not premiums) cannot exceed $8...