On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (OBBB Act), enacting several changes to employee benefit plans. Changes include increased health savings accounts (HSAs) access, a permanent telehealth exception for high-deductible health plans (HDHPs), higher annual limits for dependent care flexible spending accounts (FSAs), extended employer support for student loan repayments, cost-of-living adjustments for educational assistance, and a new “Trump Account” for children.
HSA Expansion
Eligible individuals can establish HSAs and make contributions or have them made on their behalf. To be HSA-eligible, an individual must:
- Be covered by an HDHP;
- Not be covered by any health plan that provides coverage below the minimum required HDHP deductible, with some limited exceptions;
- Not be enrolled in Medicare; and
- Not be eligible to be claimed as a dependent on another person’s tax return.
Effective January 1, 2026, individuals with direct primary care (DPC) arrangements and monthly fees of $150 or less ($300 for families) can contribute to an HSA. These limits will be adjusted annually. DPC fees are also now eligible medical expenses payable with HSA funds.
Also beginning January 1, 2026, all bronze and catastrophic ACA Exchange plans will be classified as HDHPs, expanding HSA eligibility in the individual market. Bronze plans have the highest deductibles and lowest premiums among ACA options, while catastrophic plans feature even lower premiums and very high deductibles.
HDHP Telehealth Exception
Effective for plan years beginning after December 31, 2024, the OBBB Act permanently allows HDHPs to cover telehealth and remote care services before the deductible is met, without affecting HSA eligibility.
Dependent Care FSAs
Effective January 1, 2026, the OBBB Act raises the annual dependent care FSA limit to $7,500 for single filers and joint filers, and $3,750 for married individuals filing separately. These limits are not indexed for inflation.
Education Assistance Programs – Student Loans
The OBBB Act permanently allows educational assistance programs to cover student loan payments, with up to $5,250 per employee per year available tax-free. This limit will be adjusted for inflation starting in 2027.
Trump Accounts
Starting in 2026, the OBBB Act introduces “Trump Accounts,” tax-advantaged savings accounts for children under 18. Annual contributions are capped at $5,000 per child, adjusted for inflation after 2027. Eligible children born 2025-2028 may receive a $1,000 federal contribution. Employers can contribute up to $2,500 per year tax-free. These accounts require a written plan and are subject to certain FSA rules.
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