How ERISA and HSA Have Changed for 2026: Complete Compliance Guide

ERISA and HSA rules have undergone significant changes for 2026, impacting Texas businesses with 10-200 employees. From increased contribution limits to new SECURE 2.0 requirements, understanding these updates is critical for compliance and competitive benefits. This guide covers everything you need to know.

HSA Contribution Limits for 2026

The IRS has increased HSA contribution limits for 2026:

• Individual coverage: $4,300 (up from $4,150 in 2025)
• Family coverage: $8,550 (up from $8,300 in 2025)
• Catch-up contributions (age 55+): $1,000 (unchanged)

Impact: Employees can now shelter more pre-tax income. For a family maxing out contributions, that's $8,550 in tax-free savings—potentially saving $2,000+ annually depending on tax bracket.

HDHP Minimum Deductibles and Out-of-Pocket Maximums

To qualify for HSA contributions, your High-Deductible Health Plan (HDHP) must meet these 2026 thresholds:

• Individual: Minimum deductible $1,650; max out-of-pocket $8,300
• Family: Minimum deductible $3,300; max out-of-pocket $16,600

If your current plan doesn't meet these minimums, you'll need to adjust your coverage or lose HSA eligibility. TWPS can audit your plans and ensure compliance before open enrollment.

ERISA: SECURE 2.0 Provisions Now in Effect

SECURE 2.0 introduced sweeping retirement plan changes. Here's what's mandatory in 2026:

1. Mandatory Roth Catch-Up Contributions for High Earners

Employees earning over $145,000 (indexed for 2026) must make catch-up contributions on a Roth (after-tax) basis. This replaces the previous option to make pre-tax catch-ups. Plan administrators must update payroll systems and communicate the change to affected employees.

2. Automatic Enrollment for New Plans

Any 401(k) or 403(b) plan established after December 31, 2024 must include automatic enrollment at a minimum 3% deferral rate, escalating to 10% over time. Existing plans are exempt but can adopt this voluntarily.

3. Emergency Savings Accounts Linked to Retirement Plans

Plan sponsors can now offer pension-linked emergency savings accounts (PLESAs), allowing employees to save up to $2,500 in Roth-style accounts with penalty-free withdrawals. This helps employees build emergency funds without sacrificing retirement contributions.

HSA + ERISA Integration: Strategic Opportunities

Smart Texas businesses are pairing HSAs with Section 125 cafeteria plans to maximize tax savings:

• Employer HSA contributions are tax-deductible and not subject to FICA
• Employee contributions through payroll reduce both income and payroll taxes
• Section 125 plans allow pre-tax HSA contributions without additional documentation burden

Example: A Texas business with 50 employees contributing an average of $3,000 to HSAs saves ~$15,000 annually in FICA taxes alone.

Compliance Deadlines You Can't Miss

• Form 5500 filing: Due by July 31, 2026 (or October 15 with extension)
• SPD updates: Must reflect all 2026 changes within 210 days of plan year end
• Nondiscrimination testing: ADP/ACP tests due by March 15, 2027 for calendar-year plans
• COBRA and HIPAA notices: Update within 60 days of plan changes

Missing deadlines can trigger IRS penalties starting at $250/day. TWPS's ERISA compliance services handle all filings and testing automatically.

How TWPS Simplifies ERISA and HSA Compliance

Our Texas ERISA and benefits compliance services include:

• Complete ERISA documentation (SPDs, wrap documents, cafeteria plan docs)
• Annual nondiscrimination testing (ADP/ACP, 125)
• HSA-compatible HDHP plan design and audit
• SECURE 2.0 implementation (auto-enrollment, Roth catch-ups)
• Form 5500 preparation and filing
• Ongoing regulatory monitoring and updates

Starting at $450/month, we handle the complexity so you don't have to. Schedule a free consultation to audit your current setup and identify cost-saving opportunities.