On October 9, 2025, the IRS announced the 2026 contribution limits for health care FSAs, commuter benefits and adoption assistance plans.
You can now benefit from increased contributions to your flexible spending account (FSA). Since FSA funds are income tax-free, you’ll save on every dollar you add. Plus, if you have commuter benefits, you can save more on work-related commuting costs. We’re here to help you manage your expenses and take control of your health care finances.
IRS contribution limits for the 2025 and 2026 plan years are as follows:
Important details:
- In some cases, you can contribute up to the IRS limit and still receive employer contributions.
- For FSA carryovers, a plan ending Dec. 31, 2026, would allow $680 to be carried over to the 2027 plan year. Generally, an amount that rolls over into the 2027 plan year does not affect the maximum limit that employees can contribute.
- Contribution limits for dependent care FSAs were increased as part of the One Big Beautiful Bill Act, signed into law on July 4, 2025. This is notable as the DCFSA is not indexed to yearly inflation adjustments. Single filers and married filing jointly may contribute $7,500 to their DCFSA, and those married but filing separately may contribute $3,750 to their DCFSA.
- See the latest information on annual HSA contribution limits.
For more information, read the IRS announcement at irs.gov.*
*IRS.gov is governed under separate privacy and website policies, which are available for review on their site.
Explore these health finance accounts
Flexible spending accounts (FSAs)
A health care FSA reimburses you for qualified health care expenses for you and eligible dependents.
Dependent care flexible spending accounts (DCFSA)
A dependent care FSA helps you save on eligible child and adult care services.
Commuter benefits
Commuter benefits help you save on the costs of taking a train, bus or commuter highway vehicle and on your parking fees.
Lifestyle spending accounts
Employer-funded assistance for expenses can help improve your work-life balance.
*You must meet the minimum deductible for a qualifying high-deductible health plan.
Flexible spending accounts (FSAs), dependent care assistance programs (DCAPs), health reimbursement arrangements (HRAs), Commuter and Parking Benefits, Tuition Assistance Plans, Adoption Assistance Plans, Surrogacy Assistance Plans, Wellness Benefits, and Lifestyle Accounts (collectively, “Employer-Sponsored Plans”) are administered on behalf of your plan sponsor by Optum Financial, Inc. or ConnectYourCare, LLC, and are subject to eligibility and restrictions. Employer-Sponsored Plans are not individually owned and amounts available under the Employer-Sponsored Plan are not FDIC insured.
This communication is not intended as tax or legal advice. Consult a legal or tax professional for advice on eligibility, tax treatment, and restrictions. Please contact your plan administrator with questions about enrollment or plan restrictions.