The 2026 FSA numbers (IRS official)
| Item | 2026 amount | Source |
|---|---|---|
| Health FSA contribution limit | $3,400 | IRS Rev. Proc. 2025-32 |
| Maximum carryover into 2027 (if your plan allows one) | $680 | IRS Rev. Proc. 2025-32 |
| Grace period alternative | Until March 15, 2027 | IRS rules - plan chooses carryover OR grace, never both |
| Dependent Care FSA limit | $7,500 per household ($3,750 if married filing separately) | One Big Beautiful Bill Act, 2025 - first rise since 1986; your employer must have adopted it |
| HSA limit (for comparison) | $4,400 self / $8,750 family in 2026; $4,500 / $9,000 in 2027 | IRS Rev. Proc. 2025-19 and 2026-24 |
The IRS has not yet published the 2027 health FSA limit (it usually arrives in the autumn revenue procedure). The election maths above uses the current published 2026 limits, which is also what most employers opening enrollment this fall are working from. We will update this page the day the 2027 figure is official.
Use it or lose it - how the rule actually works
An FSA is paid for with pre-tax dollars, and the price of that tax break is the forfeiture rule: money left at the end of the plan year goes back to your employer. Two softenings exist, and your plan has at most one of them. A carryover lets up to $680 of your unused 2026 balance roll into 2027. A grace period instead gives you until March 15, 2027 to incur new expenses against the old balance. Separate from both is the run-out period - the deadline to submit claims for expenses you already had, often March 31 - which gives you no extra spending time at all. Part 1 above works out which case you are in and what it means in dollars.
How much should you elect?
Elect the spending you are sure of, not the maximum. Add up the predictable items - regular prescriptions, the dental work you already know about, glasses you replace every year, childcare you pay every month. Every dollar you elect and spend saves your tax rate (federal + payroll 7.65% + state); every dollar you elect and do not spend is lost entirely (health FSA) beyond the carryover. That asymmetry is why Part 2 recommends your expected spending, trimmed 10% if your costs jump around. For a Dependent Care FSA, remember the limit is per household, and you cannot exclude more than the lower-earning spouse earns.
Related: Health Plan Cost Calculator 2027 - compare Bronze, Silver and Gold plans by true yearly cost during open enrollment, and Social Security COLA Calculator 2027.
Frequently asked questions
What is the FSA limit for 2026?
The health FSA contribution limit for 2026 is $3,400 per employee (IRS Revenue Procedure 2025-32). The Dependent Care FSA limit for 2026 is $7,500 per household, or $3,750 if married filing separately, under the One Big Beautiful Bill Act - but your employer's plan must have adopted the higher amount.
How much FSA money can I carry over into 2027?
Up to $680 of unused 2026 health FSA money can carry into 2027, if your plan offers a carryover at all - it is optional for employers, and a plan with a carryover cannot also offer a grace period. Anything above your plan's carryover amount is forfeited.
What happens if I don't spend my FSA by December 31?
It depends on your plan. With a carryover, up to $680 survives and the rest is forfeited. With a grace period, you can keep incurring eligible expenses until March 15, 2027. With neither, the whole remaining balance is forfeited on December 31.
What can I buy with leftover FSA money?
Eligible items include prescription sunglasses and eyeglasses, contact lenses and solution, dental and orthodontic work, sunscreen of SPF 15 or higher, over-the-counter medicines (no prescription needed since 2020), period products, thermometers, blood pressure monitors and first aid supplies.
Is the FSA deadline the same as the claims deadline?
No. December 31 is the deadline to incur expenses (or March 15 with a grace period). The run-out period - often until March 31 - is only for submitting claims and receipts for expenses you already incurred. It does not extend your spending time.
Should I elect the maximum FSA amount?
Only if you are certain you will spend it. Money you elect but do not spend is forfeited (health FSA: beyond the $680 carryover). Electing your predictable expenses - and trimming a little if they vary - beats maxing out and losing the excess.