President Donald Trump recently signed a major tax and spending bill, commonly referred to as the “One Big Beautiful Bill Act” (OBBB Act), into law. The OBBB Act includes changes for employee benefit plans, including the following:
- Health savings accounts (HSA) expansion—Effective Jan. 1, 2026, HSA eligibility will allow individuals with direct primary care (DPC) arrangements to make HSA contributions if their monthly fees are $150 or less ($300 or less for family coverage). Also, DPC fees will be treated as medical care expenses that can be paid using HSA funds.
- High-deductible health plan (HDHP) telehealth exceptions—A pandemic-related relief measure temporarily allowed HDHPs to waive the deductible for telehealth services without impacting HSA eligibility. This relief expired at the end of the 2024 plan year. However, the OBBB Act permanently extends the ability of HDHPs to provide benefits for telehealth and other remote care services before plan deductibles have been met without jeopardizing HSA eligibility. This extension applies to plan years beginning after Dec. 31, 2024.
- Dependent care flexible spending accounts (FSAs)—Effective Jan. 1, 2026, the maximum annual limit for dependent care FSAs increases to $7,500 for single individuals and married couples filing jointly and $3,750 for married individuals filing separately (up from $5,000 and $2,500, respectively).
- Educational assistance programs—The option to use educational assistance programs for student loans was set to expire on Dec. 31, 2025. The OBBB Act permanently extends this option.
Trump Accounts—Effective in 2026, “Trump Accounts” are a tax-advantaged savings account for children under age 18. Annual contributions are limited to $5,000 per child, and employers may contribute up to $2,500 per year to the account of an employee or an employee’s dependent.
Contact us to see how you could minimize risk:
- |
- |