Updates to 2026 FSA Limits Released
Quick Facts On October 9, 2025, the Internal Revenue Service (IRS) released IRS Revenue Procedure 2025-32, 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; however, the One Big Beautiful Bill (OBBB), signed in July 2025, updated these limits starting in 2026 Background Through Revenue Procedure 2025-32, the Internal Revenue Service (IRS) updates a variety of 2026 adjusted tax limits. Among other things, the notice indicates that employee contribution limits toward health FSAs …
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