The IRS has officially announced, under Revenue Procedure 2026-35, the 2027 flexible spending account (FSA) and commuter limits.

• The healthcare (standard or limited) FSA annual maximum plan contribution limit will increase from $3,400 to $3,500 for plan years beginning on or after January 1, 2027.
• The healthcare (standard or limited) FSA rollover maximum limit will increase from $680 to $700 for plan years beginning on or after January 1, 2027.
• The dependent care FSA maximum for 2027 is not subject to inflation (not included in Revenue Procedure 2026-35) and will remain at $7,500 ($3,750 per spouse for married couples filing separately) in 2027.

• The transit account monthly pre-tax contribution limit (combined participant and employers) will increase from $340 to $350 in 2027.
• The parking account monthly pre-tax contribution limit (combined participant and employers) will increase from $340 to $350 in 2027.

With open enrollment beginning for many employers, these limits can help employers think about their benefit plan and consider if they want to make any changes for their upcoming plan year.

You can access up-to-date statutory limit information year-round at www.ebcflex.com/PlanLimits.