October 09, 2025

IRS Releases Health Care FSA, Commuter, and Adoption Assistance Benefit Limits for 2026

Employee Benefits

3 min read

IRS Releases Health Care FSA, Commuter, and Adoption Assistance Benefit Limits for 2026

The Internal Revenue Service (IRS) released Revenue Procedure 2025-32 on October 9, 2025, outlining cost-of-living adjustments for health care flexible spending accounts (FSA), commuter, and adoption assistance program benefits for the 2026 taxable year.

The table below details the 2026 maximum limit amounts for these benefits (along with other plan limits announced earlier in the year, detailed here, here, and here), compared to the current 2025 limits.

Employers are advised to:

Revise applicable plan communications (e.g., open enrollment materials and summary plan descriptions) for 2026, and
Coordinate with benefit administration and/or payroll vendors to ensure the relevant contribution limits are updated for January 1, 2026.

Health & Welfare Plan Limits		2026	2025	Change from 2025
Health Care Flexible Spending Account (HC FSA) maximum contribution limit		$3,400	$3,300	+$100
Health Care Flexible Spending Account (HC FSA) maximum carryover amount		$680	$660	+$20
Dependent Care Flexible Spending Account (DC FSA) maximum contribution limit	Single individuals or married individuals filing jointly	$7,500	$5,000	+$2,500
	Married individuals filing separately.	$3,750	$2,500	+$1,250
Health Savings Account (HSA) maximum contribution limit* * Includes both employee and employer contribution amount limits.	Self-only coverage	$4,400	$4,300	+$100
	Family Coverage	$8,750	$8,550	+$200
Health Savings Account (HSA) catch-up contribution limit	Age 55 or older	$1,000	$1,000	No change
High-Deductible Health Plan (HDHP) minimum deductible	Self-only coverage	$1,700	$1,650	+$50
High-Deductible Health Plan (HDHP) minimum deductible	Family coverage	$3,400	$3,300	+$100
High-Deductible Health Plan (HDHP) out-of-pocket maximum amount* *Includes deductibles, copayments and other amounts, but excluding premiums.	Self-only coverage	$8,500	$8,300	+$200
	Family coverage	$17,000	$16,600	+$400
ACA Compliant Plans* cost-sharing maximum limit * The Affordable Care Act (ACA) requires health plans to place annual limits on participants’ cost sharing for essential health benefits (EHBs).	Self-only coverage	$10,600	$9,200	+$1,400
	Family coverage	$21,200	$18,400	+$2,800
Excepted Benefit Health Reimbursement Arrangement (EBHRA)* maximum amount *Employers offer EBHRAs to reimburse the cost of excepted benefits (such as limited-scope dental or vision coverage) as well as short-term, limited-duration insurance plan premiums.		$2,200	$2,150	+$50
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) maximum amount	Self-only coverage	$6,450	$6,350	+$100
	Family Coverage	$13,100	$12,800	+$300

Commuter Benefit Limit	2026	2025	Change from 2025
Qualified transit and parking maximum contribution limit^[1]	$340	$325	+$15

Adoption Assistance Program Limit	2026	2025	Change from 2025
Adoption assistance program^[2] maximum contribution limit (including for the adoption of a child with special needs)	$17,670^[3]	$17,280	+$390

Please reach out to your Risk Strategies account team with any questions, or contact us directly here.

[1] Internal Revenue Code (IRC) Section 132(f) permits employers to offer a qualified transportation benefit program to their employees on a tax-free basis through a compensation reduction agreement.

[2] Under IRC Section 137, amounts paid by an employer (subject to dollar limits and other requirements) for “qualified adoption expenses” incurred in connection with the adoption (or in certain cases, the unsuccessful attempted adoption) of a child are excludable from an employee's gross income if furnished pursuant to an “adoption assistance program” of the employer.

[3] For 2026, the amount excludable from an employee's gross income begins to phase out under IRC Section 137(b)(2)(A) for taxpayers with modified adjusted gross income of more than $265,080 and is completely phased out for taxpayers with modified adjusted gross income of $305,080 or more.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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