The IRS has announced the 2027 FSA and commuter limits under Revenue Procedure 2026-35. The healthcare FSA limit rises to $3,500, and transit and parking limits rise to $350 per month.
EBC Insights
FSA and Commuter Limits Projected to Increase
After evaluating the C-CPI-U for the 12 month period ending August 31, 2026, the Health Care FSA annual maximum plan contribution limit and rollover maximum limits are projected to increase for 2027.
2026 FSA and Commuter Limits Released
The IRS has announced 2026 updates under Revenue Procedure 2025-32, increasing the annual contribution limits for Health Care FSAs and commuter benefits.
Illinois Employers Required to Offer Pre-Tax Commuter Benefits
On January 1, 2024, employers who match certain criteria will be required to offer their employees a transportation benefits program to help provide commuting expenses…