Updated November 5, 2026. Quick answer: For 2027 a high deductible health plan used with an Archer MSA must have a self-only annual deductible of at least $3,000 and no more than $4,550, with out-of-pocket costs capped at $6,050; for family coverage the deductible runs from $6,050 to $9,050 with a $11,050 cap, per Rev. Proc. 2026-35, section 3.30. Archer MSAs are closed to most new people, so the figures matter mainly to existing account holders and employees of small employers that already participate.
Form 5498-SA, box by box: Form 5498-SA box 1 (Archer MSA contributions).
The 2027 plan limits
The Revenue Procedure states: “For taxable years beginning in 2027, the term “high deductible health plan” as defined in § 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $3,000 and not more than $4,550, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $6,050.” For family coverage: “a health plan that has an annual deductible that is not less than $6,050 and not more than $9,050, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $11,050.”
| High deductible health plan limit | 2026 | 2027 |
|---|---|---|
| Self-only deductible | $2,900 to $4,400 | $3,000 to $4,550 |
| Self-only out-of-pocket maximum | $5,850 | $6,050 |
| Family deductible | $5,850 to $8,750 | $6,050 to $9,050 |
| Family out-of-pocket maximum | $10,700 | $11,050 |
| Where printed | Rev. Proc. 2025-32, section 4.28, medical savings accounts | Rev. Proc. 2026-35, section 3.30, medical savings accounts |
The statute’s starting amounts
The statute writes lower base amounts: “in the case of self-only coverage, which has an annual deductible which is not less than $1,500 and not more than $2,250,” and for family coverage “not less than $3,000 and not more than $4,500,” with out-of-pocket maximums of $3,000 for self-only coverage and $5,500 for family coverage. The yearly Revenue Procedure publishes the inflation-adjusted amounts used in practice.
Who can still use an Archer MSA
The IRS instructions say: “After December 31, 2007, contributions can’t be made to an Archer Medical Savings Account (MSA) for you, unless:” you were an active participant for a year ending before 2008, or you became one because of coverage under a high deductible plan of a participating employer. The statute describes the employer side: “any employer if such employer employed an average of 50 or fewer employees on business days during either of the 2 preceding calendar years.”
The deduction and where it goes
The deduction is a share of the plan deductible: “65 percent of the annual deductible under such coverage,” for self-only coverage and “75 percent of the annual deductible under such coverage.” for family coverage, spread across the months a person is eligible. The IRS instructions say to use Form 8853 to “Figure your Archer MSA deduction,” and the deduction lands on Schedule 1 line 23, described on Schedule 1 lines 21 to 23, student loan interest and the Archer MSA deduction. For the far more common health savings account, see the HSA contribution limits for 2027.
Common mistakes
- Opening an Archer MSA this year. Contributions are closed except for people who qualify under the 2007 transition rules.
- Mixing up Archer MSA and HSA limits. The two accounts have separate plan definitions and separate dollar amounts.
- Using the 2026 deductible range for a 2027 plan. The 2027 self-only range is $3,000 to $4,550.
- Forgetting that the out-of-pocket cap excludes premiums but includes covered-benefit costs.
Related: Schedule 1 lines 21 to 23, student loan interest and the Archer MSA deduction, the HSA contribution limits for 2027, and the QSEHRA limit for 2027.
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Answer againSources
- Internal Revenue Service, Rev. Proc. 2026-35, tax year 2027 inflation-adjusted items: www.irs.gov
- Internal Revenue Service, Rev. Proc. 2025-32, tax year 2026 inflation-adjusted amounts, as modified by the One, Big, Beautiful Bill Act: www.irs.gov
- 26 U.S.C. 220, Archer MSAs (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
- Internal Revenue Service, Instructions for Form 8853 (2025), Archer MSAs and Long-Term Care Insurance Contracts: www.irs.gov
Read from the primary documents linked above on November 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.