2027 Contribution Limit For Flexible Spending Accounts (FSA)
The IRS announced that the maximum Medical FSA contribution limit for 2027 will be $3,500, an increase of $100 from 2026.
The limit is based on the employee and not the household. If an employee and spouse both have access to their own FSA through their respective employers, they are each eligible to contribute up to the $3,500 maximum into their respective Medical FSA.
Also effective January 1, 2027:
- The Dependent Care FSA limit remains at $7,500 if filing single, head of household, or married jointly, and $3,750 per spouse if married filing separately
- The FSA Carryover limit for plans that allow it is increasing from $680 to $700
- The Adoption Assistance limit is increasing from $17,670 to $18,250
- The maximum monthly pre-tax Commuter Benefit limit for qualified mass transit and parking is increasing from $340 to $350
There is no requirement to increase Medical FSA or Adoption Assistance limits. Employers must initiate a change. By contrast, mass transit, parking, and HSA limits will be updated automatically for elections on or after January 1, 2027.
More information can be found at: