The IRS has officially announced, under Revenue Procedure 2025-32, the 2026 flexible spending account (FSA) and commuter limits.

FSA Limits

• The health care (standard or limited) FSA annual maximum plan contribution limit will increase from $3,300 to $3,400 for plan years beginning on or after January 1, 2026.
• The health care (standard or limited) FSA rollover maximum limit will increase from $660 to $680 for plan years beginning on or after January 1, 2026.
• The dependent care FSA maximum for 2026 is not subject to inflation (not included in Revenue Procedure 2025-32) but was increased from $5,000 to $7,500 ($3,750 per spouse for married couples filing separately) in 2026. This change came from legislation passed in July 2025.

Commuter Accounts Limits

• The transit account monthly pre-tax contribution limit (combined participant and employers) will increase from $325 to $340 in 2026.
• The parking account monthly pre-tax contribution limit (combined participant and employers) will increase from $325 to $340 in 2026.

Looking Ahead

With open enrollment beginning for many employers, these limits can help employers think about their benefit plan and consider if they want to make any changes for their upcoming plan year.

You can access up-to-date statutory limit information year-round at www.ebcflex.com/PlanLimits.