FSA limits are one of those benefits numbers that move every year but rarely in ways employees notice. The IRS publishes inflation-adjusted figures in late October or early November, and employers update their open enrollment communications accordingly. For 2026, the Health Care FSA contribution maximum rose to $3,400, the carryover ceiling reached $680, and the Dependent Care FSA stayed flat at $5,000 because that limit is set by statute rather than indexed to inflation. Most employees elect well below the maximum, but the ceiling matters at the margin for high utilizers.
What the 2026 FSA Limits Actually Are The Health Care FSA contribution limit for 2026 is $3,400 per employee per year, up from $3,300 in 2025 and $3,200 in 2024. If both spouses work for employers that offer a Health Care FSA, each can contribute up to the maximum, so a household can effectively elect $6,800.
The carryover limit for 2026 is $680 (up from $660 in 2025), representing 20% of the contribution cap. Employers who offer carryover can allow employees to roll over up to this amount to the next plan year.
How Are Health Care FSA Limits Set? The Health Care FSA limit is indexed to inflation under the Affordable Care Act and rounded to the nearest $50. The IRS announces the figure each fall with other inflation-adjusted benefit limits (HSA, 401(k), 403(b)). The announcement usually lands in October or early November.
Dependent Care FSA Limits The Dependent Care FSA contribution limit stays at $5,000 for married filing jointly and single filers and $2,500 for married filing separately. This limit is set by IRC Section 129 and is not indexed to inflation. The $5,000 figure has been unchanged since 1986, making Dependent Care FSAs less valuable in real terms every year.
The Dependent Care FSA covers eligible dependent care expenses (childcare, before and after school care, day camps) for children under 13 and for disabled dependents.
What Happens When Employees Hit the Limit For Health Care FSAs, reaching the contribution limit is unusual but happens in households with chronic medical costs, orthodontic work, fertility treatments, or mental health care. The solution is a combination of HSA contributions if available, the FSA up to the limit, and out-of-pocket spending for the rest.
For Dependent Care, most families with young children in full-time care hit the $5,000 cap within the first few months of the year. The limit restricts the benefit's usefulness for families with two or more children in paid care.
Communicating FSA Limits Cleanly During Open Enrollment Open enrollment communications should reflect the current year's limits, carryover ceiling, and use-it-or-lose-it mechanics. The most common employee confusion at open enrollment is whether a mid-year job change resets the annual limit (it doesn't, elections are per employer per plan year) and whether spouses can each max out at a combined household (they can for Health Care FSAs). The IRS Publication 969 explains the rules in full, and the Health Care FSA glossary entry covers the operational mechanics. For households with both a Health Care FSA and a HSA , the interaction rules are strict and often trip up new hires at onboarding , so the enrollment flow should flag the limited-purpose FSA rules clearly.
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