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.
EBC Insights
IRS Proposes New Dependent Care FSA Testing Rules for Employers
The IRS has proposed new dependent care FSA nondiscrimination testing rules that may make the commonly failed 55% test easier for employers to pass. Here’s what employers should know about the proposed changes, correction options, and when the rules may apply.
IRS Releases Updated Form 720 for PCOR Fees
Each year, employers must wait for the IRS to update Form 720 in order to pay their PCOR fees with the correct form. The IRS has released a revision to IRS Form 720, which is used to pay the PCOR fees…
HIPAA in the Workplace: What Employers and Consultants Should Know About FSAs, HRAs, and Employee Health Information
HIPAA compliance for FSAs and HRAs explained. Learn employer responsibilities, PHI rules, and common workplace misconceptions.
An Introduction to Annual Elections and Common Permitted Election Changes
Prior to each plan year, employees make elections under their employer’s cafeteria plans. This includes, but is not limited to, pre-tax payroll deduction elections for funds…
Five Benefit Changes for 2026
Discover five major employee benefit changes for 2026—from higher dependent care FSA limits to permanent telehealth flexibility and new fertility options.
The $7,500 Dependent Care FSA Limit: A Win for Families—If Employers Can Pass the Test
Starting January 1, 2026, the annual dependent care flexible spending account (FSA) contribution limit will increase from $5,000 to $7,500. This long-awaited update is great news for working families, but it…
Getting Started with Nondiscrimination Testing
The basics of nondiscrimination testing for cafeteria plans There’s a lot to do as the end of your plan year approaches. One thing that you don’t want to forget about is nondiscrimination testing for your…
Benefits in Uncertain Times
In today’s volatile economic landscape, businesses are grappling with unprecedented challenges. The recent imposition of tariffs and the elimination of government contracts have led to significant disruptions, particularly for small businesses. For some…
2024 FSA and Commuter Limits
The IRS has officially announced, under Revenue Procedure 2023-34, the 2024 flexible spending account (FSA) and commuter limits. FSA Limits The Health Care (standard or limited) FSA annual maximum plan contribution limit will increase from $3,050…