IRS Releases 2027 FSA Limits
Quick Facts On November 5, 2026, the Internal Revenue Service (IRS) released IRS Revenue Procedure 2026-35 which updates maximum limits for health flexible spending arrangements (FSAs) and commuter benefits. These limits are adjusted annually for inflation. Limits for Dependent Care Assistance Programs (DCAP) are not addressed in the IRS guidance. These limits are set by statute and not adjusted annually for inflation. Background In Revenue Procedure 2026-35, the IRS sets forth a variety of 2027 adjusted tax limits. Among other things, the notice indicates that employee contribution limits toward health FSAs and qualified transportation fringe benefits will increase …
https://www.epicbrokers.com/insights/irs-releases-2027-fsa-limits/