The U.S. Department of the Treasury and IRS this week shared details about the health savings account updates enacted via President Donald Trump’s “big beautiful bill.”
The notice covers the legislation’s new tax benefits for HSAs, including wider eligibility via high-deductible health plans, or HDHPs. Participants must have an eligible HDHP to make HSA contributions.
HSAs offer three tax benefits: an upfront deduction for contributions, tax-free growth and tax-free withdrawals for qualified medical expenses.
“These changes expand HSA eligibility, which allows more people to save and to pay for healthcare costs through tax-free HSAs,” the IRS said in a news release on Tuesday.
More than 59 million Americans had an HSA as of Dec. 31, 2024, according to a survey from Devenir, a company that provides HSA investment solutions and research, and the American Bankers Association’s Health Savings Account Council. The survey polled the top 20 HSA providers.
