The 2026 health FSA limit is $3,400. The 2027 limit is not published. As of October 31, 2026, the IRS has not released it.
Open enrollment still wants a 2027 number from you. This post covers what is confirmed and what is only projected. It also covers how to elect while the official figure is missing.
The Short Answer
| Item | 2026 (confirmed) | 2027 status as of October 31, 2026 |
|---|---|---|
| Health FSA salary reduction limit | $3,400 | Not published. Projected at $3,500 on mercer.com. |
| Health FSA carryover maximum | $680 | Not published. Projected at $700 on mercer.com. |
| Dependent care FSA limit | $7,500 ($3,750 married filing separately) | $7,500. Fixed in the statute, not indexed. |
| Grace period length | Up to 2 months and 15 days | Same rule. Not an annual figure. |
| HSA limit, for comparison | $4,400 self-only, $8,750 family | $4,500 self-only, $9,000 family. Published. |
What Is Confirmed for 2026
Revenue Procedure 2025-32 sets the 2026 numbers. Section 4.15 covers cafeteria plans. The salary reduction limit for health FSAs is $3,400.
The same section sets the carryover. "If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $680."
The IRS announced both on October 9, 2025. The limit rose $100 from the 2025 figure of $3,300.
The limit applies per employer. HealthCare.gov describes FSA contributions as limited "per year per employer." That page still shows the 2025 dollar amount as of October 31, 2026.
What Is Not Confirmed for 2027
The 2027 health FSA limit and carryover are not published. The IRS newsroom shows no tax year 2027 inflation adjustment release through October 29, 2026. No revenue procedure sets either figure yet.
The number circulating online is $3,500, with a $700 carryover. That is a projection. It was published on mercer.com on June 11, 2026, under the Marsh name.
The page labels those limits unofficial. It applied the tax code's cost-of-living method to inflation data through June, plus projected figures for July and August.
It also flags a data gap. The Bureau of Labor Statistics did not publish October 2025 CPI because of the federal shutdown. As of June 2026, the page says the IRS had not announced a fix for the gap. It also says the projected limits should not change.
Treat $3,500 as a planning guess. It is not your cap until the IRS says so.
When the IRS Publishes It
The health FSA limit ships inside the IRS's annual inflation adjustment revenue procedure. That same document covers tax brackets, the standard deduction, and dozens of other items.
The last two releases both landed in October:
| Plan year | Health FSA limit | Source | Announced |
|---|---|---|---|
| 2025 | $3,300 | Revenue Procedure 2024-40 | October 22, 2024 |
| 2026 | $3,400 | Revenue Procedure 2025-32 | October 9, 2025 |
| 2027 | Not published | Not issued as of October 31, 2026 | Pending |
The mercer.com page names October or November as the announcement window. October 2026 ended without one. That leaves November as the next window.
The HSA side runs on a different schedule. The 2027 HSA limits came out in May 2026 in Revenue Procedure 2026-24. So the HSA number is known and the FSA number is not.
How to Elect at Open Enrollment Without the Number
Your enrollment form needs a dollar figure now. Four steps get you to one.
Step 1: Elect against the 2026 cap. $3,400 is the latest limit the IRS has confirmed. An election at or below it sits inside a published number.
Step 2: Check your plan's own cap. The IRS figure is a ceiling. IRS Publication 15-B says a cafeteria plan "may not allow" health FSA salary reductions above $3,400 for 2026.
Your plan document sets your actual maximum. It can allow less. It cannot allow more.
Step 3: Ask about mid-year changes. Ask your benefits team one question. If the IRS raises the cap after you enroll, can you increase your election?
Publication 969 says you "can change or revoke your election only if specifically allowed by law and the plan." Your plan's answer is the one that counts.
Step 4: Size it to spending you can predict. Money left after the carryover or grace period is forfeited. Fill the election with expenses already on the calendar. Think prescriptions, scheduled dental work, glasses, or contacts.
Two more rules from IRS Notice 2013-71 matter here. The full annual election is available from the first day of coverage. That is the uniform coverage rule. And unused money is forfeited if you leave your job, unless you elect COBRA for the FSA.
Grace Period vs Carryover
A plan can soften use-it-or-lose-it in one of two ways. It cannot use both in the same plan year. It can also offer neither.
The grace period gives you up to two months and 15 days after the plan year ends. For a calendar-year plan, that runs through March 15. New expenses in that window can draw on last year's money.
The carryover moves leftover money into the next plan year instead. The 2026 maximum is $680. Notice 2013-71 says the carryover "does not count against or otherwise affect" the salary reduction limit. So a carryover sits on top of a full election for the next year.
Notice 2013-71 states the either-or rule directly. "A plan adopting this carryover provision is not permitted to also provide a grace period with respect to health FSAs."
Do not confuse either one with a run-out period. A run-out period is time to submit claims for last year's expenses. It does not let you spend on new ones.
The year-end mechanics are covered in FSA Deadline Rules: What Happens to Unspent Money on December 31.
Dependent Care FSA: $7,500, Set by Statute
The dependent care FSA is a separate account with a separate limit. It pays for dependent care, not medical bills.
The limit is $7,500, or $3,750 for a married person filing separately. Public Law 119-21, section 70404, raised it from $5,000. The change applies to taxable years beginning after December 31, 2025. It is a 2026 change, not a 2027 one.
The figure sits in 26 USC 129(a)(2)(A) as a fixed dollar amount. The statute has no inflation adjustment for it. So 2027 stays at $7,500 unless Congress changes the law.
One IRS document got this wrong. The 2026 Form W-2 and W-3 instructions printed $5,000. The IRS posted a correction citing the $7,500 figure.
More on running both accounts in Dependent Care FSA vs HSA: You Can Have Both.
The HSA Plus Limited-Purpose FSA Pairing
A general health FSA and an HSA do not mix. Publication 969 covers an employee with an HDHP plus a general health FSA. That employee "can't generally make contributions to an HSA."
The exception is a limited-purpose health FSA. Publication 969 says it can cover items like dental care, vision care, and preventive care. The health FSA salary reduction cap applies to it.
Say a hypothetical employee has self-only HDHP coverage in 2027. The employer offers an HSA and a limited-purpose FSA. The HSA limit is $4,500, including any employer contribution. At the confirmed 2026 FSA cap of $3,400, that is $7,900 of tax-advantaged room.
The full setup is in Limited-Purpose FSA: The Only FSA You Can Stack With an HSA. The 2027 HSA numbers are in 2027 HSA Contribution Limits: $4,500 Single, $9,000 Family.
When the Number Posts
Look for the IRS news release on tax inflation adjustments for tax year 2027. The health FSA figure sits in the cafeteria plans section of the revenue procedure.
If the official cap lands above your election, your plan decides whether you can raise it. If it lands below $3,500, any election built on the projection needs a second look.
This page gets updated with the official figures once the IRS publishes them.
Related Reading
- ●HSA vs FSA: Which Health Account Is Better for You?
- ●Open Enrollment 2027: How to Pick the HSA Option
- ●Limited-Purpose FSA: The Only FSA You Can Stack With an HSA
- ●Dependent Care FSA vs HSA: You Can Have Both
This is educational content, not financial or tax advice. Consult a qualified professional before making decisions about your HSA.