IRS Releases New Tax Benefits Guide for HSAs Under Big Beautiful Bill

The changes, set out in Notice 2026-05, expand HSA eligibility, allowing more people to save and to pay for health care costs through tax-free HSAs, the IRS said. The notice also answers common questions related to the changes.

The OBBB expands access to HSAs, the notice explains, by:

• Making permanent the ability to receive telehealth and other remote care services before meeting the deductible of their high-deductible health plan while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025. (All HSAs must be tied to a high-deductible health plan.)
• 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. This expands the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an exchange to qualify for the new relief.
• Beginning Jan. 1, 2026, an otherwise eligible individual enrolled in certain direct primary care (DPC) service arrangements may contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.

The notice states, for instance, that a plan will not fail to be an HDHP solely because it offers telehealth benefits without a deductible for a service that is included on the list of telehealth services payable by Medicare that is published annually by the Department of Health and Human Services.