After evaluating the average chained Consumer Price Index (CPI) for all urban customers (C-CPI-U), which accounts for inflation, the health care flexible spending account (FSA) annual maximum plan contribution limit and rollover maximum limits are projected to increase for plan years starting on or after January 1, 2027. The monthly transit and parking pre-tax contribution limits are also projected to increase January 1, 2027.

Healthcare FSA Limits

• The healthcare (standard or limited) FSA annual maximum plan contribution limit is projected to increase from $3,400 to $3,500 in 2027.
• The healthcare (standard or limited) FSA rollover maximum limit is projected to increase from $680 to $700 in 2027.

Commuter Account Limits

• The transit account monthly pre-tax contribution limit (combined participant and employer) is projected to increase from $340 to $350 in 2027.
• The parking account monthly pre-tax contribution limit (combined participant and employer) is projected to increase from $340 to $350 in 2027.

These are projected limits reported by Mercer and Thomson Reuters. These limits are subject to change and are not considered official until the IRS releases a Revenue Procedure on these benefit limits later this year.

Looking Ahead

With open enrollment around the corner for many employers, these projected limits can help employers think about their benefit plan and consider if they want to make any changes for their upcoming plan year. We will notify all brokers and employers when these plan limits are officially announced. Stay tuned for more information!

You can access up-to-date statutory limit information year round at www.ebcflex.com/PlanLimits. Additional information on projected limits can be found here.