IRS Announces 2026 Benefit Contribution Limits
The IRS has released the 2026 contribution limits for several employee benefit programs, including Flexible Spending Accounts (FSAs), commuter benefits, adoption assistance, and Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs). These updates reflect annual inflation adjustments and take effect January 1, 2026.
Flexible Spending Accounts (FSAs)
• 2026 Limit: $3,400 per year (up from $3,300 in 2025)
• Carryover Amount: $680 (up from $660 in 2025)
Commuter Benefits
• 2026 Limit: $340 per month (up from $325 in 2025)
Applies to both mass transit and parking expenses.
Adoption Assistance
• 2026 Limit: $17,670 (up from $17,280 in 2025)
The exclusion for adopting a special needs child is the same—$17,670.
The benefit phases out for taxpayers with modified adjusted gross income above $265,080, and is completely phased out at $305,080.
Qualified Small Employer HRAs (QSEHRAs)
• Self-only: $6,450 (up from $6,350 in 2025)
• Family: $13,100 (up from $12,800 in 2025)
Health Savings Accounts (HSAs) – previously announced
• Self-only: $4,400 (up from $4,300 in 2025)
• Family: $8,750 (up from $8,550 in 2025)
High Deductible Health Plans (HDHPs)
Self-only coverage:
• Minimum deductible: $1,700
• Max out-of-pocket limit: $8,500
Family coverage:
• Minimum deductible: $3,400
• Max out-of-pocket limit: $17,000
Quick Summary
• FSA: $3,400 annual limit | $680 carryover
• Commuter Benefits: $340/month
• Adoption Assistance: $17,670 annual limit
• QSEHRA: $6,450 individual | $13,100 family
• HSA: $4,400 individual | $8,750 family
At World Insurance Association (WIA), we keep employers and employees informed about important benefit updates that impact your coverage and compliance. For more benefit insights and plan updates, visit wiaonline.com/blog.
