2FA for P&A Participants
COBRA, Commuter Benefits, Parking, Participant, Reimbursement Accounts, Savings Accounts, Transit
On Thursday, November 5, 2026, the IRS announced the 2027 contribution limits for FSAs and commuter benefits. Here are the new annual limits for account holders beginning on January 1, 2027.
2027 Contribution Limits for FSAs
Health FSA
- For 2027, the Health Flexible Spending Account annual maximum contribution will increase by $100 to $3,500.
- For Health FSA plans with the optional Health FSA Carry Forward provision, there is an IRS limit on the amount of unused funds that can be carried forward every year. In 2027, the maximum Health FSA Carry Forward is $700, up from $680 in 2026. Please note: your employer may impose a different carry forward limit. Please check your plan’s Summary Plan Description (SPD) to confirm the maximum carry forward amount.
Adoption Assistance FSA
The maximum amount that may be excluded from an employee’s gross income under an Adoption Assistance FSA will increase from $17,670 to $18,250.
Commuter Plan – Parking & Transit Account
For 2027, the Parking & Transit monthly contribution limit will increase by $10 to $350 per account.
2027 HSA Limits Released Earlier this Year
Overview of Changes for 2027
Plan Type |
2026 Limits |
2027 Limits |
| Health Flexible Spending Account | $3,400 annual contribution | $3,500 annual contribution |
| Health FSA Carry Forward Maximum | $680 | $700 |
| Adoption Assistance Flexible Spending Account | $17,670 annual contribution | $18,250 annual contribution |
| Parking Plan | $340 monthly contribution | $350 monthly contribution |
| Transit Plan | $340 monthly contribution | $350 monthly contribution |
| Health Savings Account – Contribution Limit | $4,400 annual contribution for individual coverage/$8,750 for family coverage | $4,500 annual contribution for individual coverage/$9,000 for family coverage |
| Health Savings Account – Annual HDHP Minimum Deductible | $1,700 for individual coverage/$3,400 for family coverage | $1,750 for individual coverage/$3,500 for family coverage |
| Health Savings Account- Out-of-Pocket Maximums | $8,500 for individual coverage/$17,000 for family coverage | $8,700 for individual coverage/$17,400 for family coverage |
For more information, please refer to IR-2026-133.
