The IRS published the 2027 limit for health flexible spending accounts on November 5, 2026, in Revenue Procedure 2026-35, announced in news release IR-2026-133. It had set the 2027 HSA limits in May, in Revenue Procedure 2026-24.

The 2027 health FSA limit is $3,500, with a $700 carryover

For plan years beginning in 2027, an employee can put up to $3,500 into a health FSA through salary reduction, $100 more than in 2026. A plan that allows a carryover can let up to $700 of unused 2027 money roll into 2028. Both figures are in section 3.16 of Revenue Procedure 2026-35.

Section 125(i) of the tax code sets the limit at $2,500 and adjusts it for inflation each year, rounded down to the nearest $50, which is why it moves in steps of $50 or $100. The carryover is 20 percent of that year's limit, a rule the IRS set in Notice 2020-33.

Two rules decide what the limit means for your own election:

• It applies to each employee, not each household. Each spouse with access to a health FSA can elect the full amount through their own employer, even in the same plan (Notice 2012-40).
• Your plan can set a lower cap. The IRS figure is the most a plan may allow, and an employer may write a lower one into the plan (Notice 2012-40). Your plan's own limit is on your open enrollment screen.

Unused money carries over or gets a grace period, not both

A plan handles unused money in one of three ways, and the choice is the employer's:

• Carryover. Up to $700 of unused 2027 money moves into 2028.
• Grace period. Up to two and a half months after the plan year ends to spend what is left.
• Neither. The balance is forfeited.

A plan may not offer both a carryover and a grace period for the same plan year (Notice 2013-71). What happens to your FSA money after the year is up walks through the three cases.

The 2027 HSA limit is $4,500 for self-only coverage and $9,000 for family coverage

The contribution limits and the high deductible health plan (HDHP) thresholds are in Revenue Procedure 2026-24 for 2027 and Revenue Procedure 2025-19 for 2026. The HDHP rows decide whether a health plan qualifies to pair with an HSA at all: its deductible has to be at least the minimum and its out-of-pocket maximum no more than the maximum.

HSA limits run on the calendar year, whatever your plan year. Unlike the FSA limit, the HSA limit counts everything put in during the year, your employer's contributions included, so an employer that adds $1,000 leaves you $3,500 of room on self-only coverage. Contributions for 2027 can be made until your 2027 tax return is due, in April 2028. Both rules are in IRS Publication 969.

Dependent care stays at $7,500 and commuter benefits rise to $350 a month

Congress raised the dependent care limit from $5,000 in Public Law 119-21 in July 2025, for tax years beginning in 2026, and the IRS states the new figure in Publication 15-B for 2026. It is not among the figures the IRS adjusts for inflation each year, so it stays at $7,500 for 2027 unless Congress changes it. The commuter figures move with inflation in the same revenue procedure as the health FSA limit.

Choosing a 2027 election

The limit is a ceiling, not a target. An election that fits your spending adds up three figures from last year:

• Copays and deductibles. Your insurer's portal adds these up for you.
• Eligible products. Sunscreen, pain relief, first aid and the like, spread through a year of receipts.
• Out-of-network services. Therapy, chiropractic care and the like, on your card statements.

How much should you contribute during open enrollment walks through all three. If your plan carries over up to $700, an election within $700 of what you spend loses nothing.

The second figure is the one people underestimate, because the eligible items are spread across a year of ordinary shopping. Silver connects to the retailer accounts you already use, finds the eligible purchases in them, and submits the claims, so you can see what you spent last year before you decide what to elect.