2027 IRS limits for FSA, Commuter, and HSA accounts

On November 5, 2026, the IRS released inflation adjustments for tax year 2027, outlining cost-of-living adjustments for various IRS Code provisions, including Flexible Spending Accounts (FSAs) and Section 132 Transportation Plans. 

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Flexible Spending Accounts (FSA)

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Dependent Care FSA (DCFSA) limits remain unchanged for 2027. In 2027 as 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.

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Pre-tax commuter benefits

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Health Savings Accounts (HSA)

As a reminder, the IRS released Health Savings Account (HSA) limits earlier this year.

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As always, these new pre-tax account limits arrive late in the year, which we know is challenging for benefits and HR teams during this busy time. 

If your open enrollment for 2027 has not closed yet, you should consider communicating the new plan limits to employees by updating your enrollment materials. If your open enrollment for 2027 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.

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Want to understand more about how the 2027 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.

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*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.