2026 IRS Updates: New FSA, HSA, & QSEHRA Limits AnnouncedCurated insights for your 2026 planning season

10/17/2025 - By Judy Fryer

The IRS has officially released updated contribution limits for several employee benefit programs for the 2026 tax year, including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), commuter benefits, and adoption assistance. These updates are critical for employers and HR professionals preparing for open enrollment and benefits strategy in the upcoming year.

Key 2026 IRS Benefit Limits

Here’s a breakdown of the newly announced limits:

Flexible Spending Accounts (FSAs)

Medical, limited-purpose, combination, and post-deductible FSAs: $3,400/year (↑ $100 from 2025)
Medical FSA carryover: $680/year (↑ $20 from 2025)

Commuter Benefits

Mass transit and parking: $340/month

Adoption Assistance

Maximum exclusion: $17,670/year

Qualified Small Employer HRAs (QSEHRAs)

Individual coverage: $6,450/year
Family coverage: $13,100/year

Previously Announced 2026 HSA Limits

Individual contribution: $4,400/year
Family contribution: $8,750/year
Minimum HDHP deductible: $1,700 (individual) / $3,400 (family)
Maximum HDHP out-of-pocket: $8,500 (individual) / $17,000 (family)
To view additional 2026 HSA limits previously announced

Dependent Care FSA

Contribution limit: $7,500/year

These updates are outlined in IRS Revenue Procedure 2025-32, which provides the official guidance for employers and plan administrators.

What This Means for Employers and Employees

The modest increases across FSAs, HSAs, and commuter benefits reflect ongoing adjustments for inflation and cost-of-living. Employers should begin reviewing their benefit offerings to ensure compliance and competitiveness in the market. These changes also present an opportunity to educate employees about maximizing their tax-advantaged benefits.

Next Steps for Your 2026 Enrollment Strategy

As we approach the 2026 plan year, now is the time to:

Update your benefits platforms and employee communications
Coordinate with payroll and HRIS systems for accurate limit implementation
Consider employee education campaigns to boost engagement and utilization

Need Help Navigating These Changes?

Navigating annual IRS updates can be complex, but you don’t have to do it alone. Our Flexible Benefits team is here to help you interpret the changes, update your plans, and communicate effectively with your employees. We look forward to supporting another successful plan year. Contact our team today for personalized guidance and support.

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