The IRS has released the 2027 benefit account limits. Here is a side-by-side look at 2026 and 2027, plus what happens to unused money. Employers should check their plan documents: a plan may offer less than the federal maximum or impose additional rules.
2026 and 2027 limits at a glance
| Benefit | 2026 | 2027 |
|---|---|---|
| Health FSA employee salary reduction | $3,400 | $3,500 |
| Health FSA maximum carryover from that plan year | $680 into 2027 | $700 into 2028 |
| HSA contribution: self-only | $4,400 | $4,500 |
| HSA contribution: family | $8,750 | $9,000 |
| HSA catch-up: age 55 or older | Additional $1,000 | Additional $1,000 |
| Dependent care assistance (DCAP): generally | $7,500 | $7,500 |
| DCAP: married filing separately | $3,750 | $3,750 |
| QSEHRA: self-only | $6,450 | $6,700 |
| QSEHRA: family | $13,100 | $13,550 |
| Excepted benefit HRA: newly available amount | $2,200 | $2,250 |
| ICHRA and traditional integrated HRA | No general federal dollar cap | No general federal dollar cap |
HSA limits apply to calendar years. Health FSA and excepted benefit HRA limits generally apply to plan years beginning in the indicated year. QSEHRA limits are annual and may be prorated for partial-year eligibility. DCAP limits apply to the employee’s tax year.
Health FSA: carryover or grace period
A health FSA lets employees set aside pre-tax salary for eligible medical, dental and vision expenses. The limits shown are employee salary-reduction limits; employer contributions are subject to separate rules. A limited-purpose FSA generally uses the same salary-reduction limit and can be designed to work with an HSA.
If the plan permits carryover, up to $680 remaining from a 2026 plan year may carry into 2027. For a 2027 plan year, up to $700 may carry into 2028. A plan may set a lower amount or offer no carryover. An employer may instead offer a grace period of up to 2½ months after the plan year; a health FSA cannot offer both a carryover and a grace period for the same plan year. A run-out period is different: it gives participants time to submit claims for expenses incurred during the allowed coverage period.
HSA: the balance stays with the employee
Unused HSA funds roll over indefinitely, with no carryover dollar cap. The account belongs to the individual and remains theirs when they change jobs or retire. Employer and employee contributions count together toward the annual limit. Eligible people age 55 or older may contribute an additional $1,000; each eligible spouse must make their own catch-up contribution to their own HSA. Limits may be prorated when eligibility changes during the year.
HSA eligibility depends on the person’s coverage and circumstances. A general-purpose health FSA or HRA, including a health FSA carryover, can make someone ineligible to contribute to an HSA. Review the account design before pairing benefits.
Dependent care FSA / DCAP
Dependent care accounts help pay for eligible care that allows an employee and, if married, their spouse to work or look for work. The $7,500 limit generally applies to a household; a $3,750 limit applies to a married person filing separately. Employer contributions count toward the exclusion limit, and earned-income and other tax rules can reduce the amount available. These are dependent care limits, not medical FSA limits.
Dependent care FSAs generally do not permit a health FSA-style carryover. If the plan permits, a grace period of up to 2½ months may allow unused funds to pay for eligible expenses incurred after the plan year ends. Otherwise, unused amounts are generally forfeited, subject to plan terms and applicable rules.
HRA: the type of arrangement matters
HRAs are employer-funded reimbursement arrangements. A QSEHRA is available to qualifying small employers and has the annual limits above. An excepted benefit HRA has its own limit on amounts newly made available. ICHRAs and traditional integrated HRAs generally do not have a federal maximum dollar allowance, although their eligibility and design rules still apply.
HRA carryover depends on the plan’s terms and the particular type of HRA. An employer may allow unused amounts to roll forward, subject to applicable rules. For a QSEHRA, amounts carried forward together with the new year’s permitted benefit must remain within the applicable annual statutory limit. For an excepted benefit HRA, permitted carryover generally does not count toward the limit on amounts newly made available. HRAs are not employee-owned accounts like HSAs.
What employers should do now
- Confirm which benefits your plan offers and whether it allows carryover or a grace period.
- Coordinate 2027 election limits and payroll setup with your administrator.
- Check how a health FSA or HRA interacts with employees’ HSA eligibility.
- Explain the deadlines and rules in open enrollment materials, especially the difference between carryover, grace periods and claim run-out periods.
Need help reviewing your benefits? Contact Sapper Insurance or call 425-363-4300. Read more about ICHRA and QSEHRA options.
Updated November 6, 2026. This article provides general information, not individualized tax or legal advice. Plan documents and individual circumstances matter; consult your plan administrator or tax adviser.
Sources: IRS Revenue Procedure 2026-35; IRS Revenue Procedure 2026-24; IRS Revenue Procedure 2025-32; IRS 2026 HSA and excepted benefit HRA limits; IRS Publication 15-B; IRS Publication 969; IRS Notice 2017-67.