What’s changing for 2026 pre-tax account IRS limits?
See how FSA, HSA, and Section 132 Transportation Plan limits are changing from 2025 levels for the 2026 calendar year.
In this piece
On October 9, 2025, the IRS released Rev. Proc. 2025-32 with 2026 cost-of-living adjustments for various IRS Code provisions, including Health Flexible Spending Accounts (FSAs) and Section 132 Transportation Plans.
In addition, the One Big Beautiful Bill (OBBB) Act increased the maximum exclusion for Dependent Care FSA reimbursement. Beginning in 2026, the maximum exclusion will be $7,500 for single employees and married employees filing taxes jointly and $3,750 for married employees filing taxes separately.
As a reminder, the IRS released Health Savings Account (HSA) limits earlier this year.
As always, these new pre-tax account limits arrive very late in the year, which we know is challenging for benefits and HR teams during this busy time.
If your open enrollment for 2026 has not closed yet, you should consider communicating the new plan limits to employees by updating your enrollment materials. If your open enrollment for 2026 has closed already, you can consider allowing employees the opportunity to make new elections before the start of the year based on the limit increases.
Want to understand more about how the 2026 IRS limits for pre-tax accounts including FSAs and HSAs might affect your benefits programs and your employees? We’ve got you. <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Grab time with one of Forma’s benefits compliance experts</span> and we’d be happy to help you navigate the changes.
*This document is for informational purposes. Forma is not engaged in the practice of law. Nothing contained herein is intended as tax or legal advice nor to replace tax or legal advice from counsel. If you need tax or legal advice, please consult with counsel or a certified tax professional.
