The Catch Up Act allows married couples, both covered by a high-deductible health plan, to jointly make catch-up contributions to a single Health Savings Account.
W. Steube
Representative
FL-17
The Catch Up Act allows married couples, both covered under a high-deductible health plan, to jointly contribute to a single Health Savings Account (HSA). This legislation clarifies how the total annual contribution limit, including age-based catch-up amounts for spouses aged 55 and older, is calculated and equally split between them. These changes are effective for tax years beginning after December 31, 2025.
New 'Catch Up Act' Lets Couples Pool HSA Savings, Maximizing Tax Breaks After 55
The new Catch Up Act is making a specific, but significant, change to how married couples manage their Health Savings Accounts (HSAs). Starting in the 2026 tax year, if both spouses have a High-Deductible Health Plan (HDHP), they can treat their combined HSA contribution limit as one single pot. This means they can split the total allowed contribution—including the family limit—however they choose, rather than being locked into separate, potentially restrictive, individual limits.
The 'One Pot' Rule for Health Savings
Right now, figuring out who can contribute what to an HSA when both spouses have separate coverage can feel like navigating a maze of tax code rules. This bill cuts through that complexity. It says that for tax purposes, the couple’s total contribution limit is calculated first, ignoring any other HDHP coverage either spouse might have (Section 2). Then, after subtracting any money contributed to older Archer MSAs, the remaining limit must be split equally, unless the couple agrees on a different division (Section 2). This is a huge win for flexibility, allowing families to move money where it’s most needed or where the highest interest rate is, without sweating the IRS rules about whose account gets what.
Maximizing the 55+ Bonus
Where this really pays off is for couples hitting retirement age. HSAs already allow people aged 55 and older to make an extra "catch-up contribution"—a bonus amount above the standard limit—to help them save for their inevitable late-life healthcare costs. Under current rules, it can be tricky for a couple to ensure both spouses get to utilize this bonus.
The Catch Up Act clarifies that if both spouses are 55 or older before the end of the tax year, they can include both of their individual catch-up contribution amounts in that single, combined, shared limit (Section 2). Think of a couple, both 56, who are trying to maximize their tax-advantaged savings. This rule allows them to pool both of their individual $1,000 catch-up contributions, plus the family maximum, and allocate the total sum to either spouse’s HSA in the most beneficial way. This change provides a powerful new tool for older couples looking to aggressively save for retirement healthcare costs.
What This Means for Your Financial Planning
This isn’t just an accounting change; it’s a boost to financial agility. For a married couple where one spouse earns significantly more or has a better investment vehicle, they can now legally direct a larger portion of the combined tax-free savings into that one account. For instance, if a construction manager and a software engineer are married, and the software engineer’s HSA offers superior investment options, they can now agree to allocate the vast majority of their combined limit to the engineer’s account, maximizing their long-term growth. Since these changes don't kick in until tax years beginning after December 31, 2025, you’ve got time to talk with your spouse and your financial planner about the best way to split the pot once the new rules take effect.