The IRS released Revenue Procedure 2025-32, announcing the adjusted contribution limits for health flexible spending accounts (Health FSAs), among other limits, for the 2026 calendar year.
The 2026 limits, as compared to the 2025 limits, are outlined below:
| 2026 | 2025 | |
| Health FSA | $3,400 | $3,300 |
| Maximum Health FSA Carryover Amount | $680 | $660 |
| Dependent Care FSA | $7,500 | $5,000 |
| Qualified Commuter/Parking Benefits | $340 | $325 |
| Adoption Assistance Tax Credit | $17,670 | $17,280 |
In addition, the annual changes to the Affordable Care Act (ACA) maximum out-of-pocket limits were released earlier this year by the Department of Health and Human Services published in final regulations, and are shown below:
| 2026 | 2025 | |
| ACA Maximum Out-of-Pocket Limit | $ 10,600 (single)/ $ 21,200 (family) | $ 9,200 (single)/ $ 18,400 (family) |
As a reminder, the 2026 limits released this May in IRS Revenue Procedure 2025-19 for health savings accounts (HSAs) and high deductible health plans (HDHPs) are provided in our blog, Sequoia Foreword: 2026 Benefit Limits: HSA, HDHP, and ACA.
Employer Action Items
- Employers should ensure their systems, documents, and enrollment materials are updated with the 2026 limits.
- Employers should notify their employees of the new 2026 limits.
Additional Resources
- IRS Revenue Procedure 2025-32
- IRS Revenue Procedure 2025-19
- Final Regulations
- Sequoia Foreword: 2026 Benefit Limits: HSA, HDHP, and ACA
Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions.  And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources. 
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