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Flexible Spending Accounts (FSA)
2027 FSA limits, commuter limits announced
The IRS released 2027 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits, and more as part of Revenue Procedure 2026-35. These limits undergo annual adjustments to account for inflation.
2027 medical FSA contribution limits (including limited and combination FSAs)
2026: $3,400 per year
2027: $3,500 per year
| 2026 | 2027 |
| $3,400 per year | $3,500 per year |
2027 medical FSA carryover
2026: $680 per year
2027: $700 per year
| 2026 | 2027 |
| $680 per year | $700 per year |
2027 commuter benefits contribution limits
2026: $340 per month
2027: $350 per month
| 2026 | 2027 |
| $340 per month | $350 per month |
2027 adoption assistance limits
2026: $17,670 per year
2027: $18,250 per year
| 2026 | 2027 |
| $17,670 per year | $18,250 per year |
The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $18,250. This amount is the same as what may be excluded from that employee’s gross income for expenses incurred by an employer for qualified adoption expenses under the same program.
The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $273,680 and is completely phased out for taxpayers with modified adjusted gross income of $313,680 or more.
2027 qualified small employer health reimbursement arrangement (QSEHRA) limits
2026: $6,450 per year (Self-only), $13,100 per year (Family)
2027: $6,700 per year (Self-only), $13,550 per year (Family)
| QSEHRA | 2026 | 2027 |
| Self-only | $6,450 per year | $6,700 per year |
| Family | $13,100 per year | $13,550 per year |
Previously announced
2027 health savings account (HSA) limits
2026: $4,400 (Self-only), $8,750 (Family)
2027: $4,500 (Self-only), $9,000 (Family)
| HSA | 2026 | 2027 |
| Self-only | $4,400 | $4,500 |
| Family | $8,750 | $9,000 |
2027 HDHP amounts/limits
HDHP (self-only coverage)
2026: $1,700 (Minimum deductible), $8,500 (Maximum out-of-pocket limit)
2027: $1,750 (Minimum deductible), $8,700 (Maximum out-of-pocket limit)
HDHP (family coverage)
2026: $3,400 (Minimum deductible), $17,000 (Maximum out-of-pocket limit)
2027: $3,500 (Minimum deductible), $17,400 (Maximum out-of-pocket limit)
| HDHP (self-only coverage) | 2026 | 2027 |
| Minimum deductible: | $1,700 | $1,750 |
| Maximum out-of-pocket limit: | $8,500 | $8,700 |
| HDHP (family coverage) | 2026 | 2027 |
| Minimum deductible: | $3,400 | $3,500 |
| Maximum out-of-pocket limit: | $17,000 | $17,400 |
To recap:
- The 2027 medical FSA contribution limit will be $3,500 per year, which is a $100 increase from 2026.Â
- Employers can allow employees to carry over $700 from their medical FSA for taxable years beginning in 2027, which is a $20 increase from 2026.Â
- The monthly commuter benefits limit in 2027 for mass transit and parking is $350 per month.Â
- Employer contribution limits for QSEHRAs are $6,700 for self-only and $13,550 for families.Â
- 2027 HSA contribution limits were previously announced by the IRS. The HSA limit is $4,500 for an individual and $9,000 for family.
Are you interested in learning more about the compliance, eligibility rules, and perks behind FSAs and HSAs? Check out our Benefits Buzz podcast below!
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