Thursday, December 18, 2025

   

GUEST COLUMN: Compliance FYI: IRS Announces Health FSA Limits for 2026

By M3 Insurance, WHA’s Premier Partner

Compliance, Employee Benefits

M3 logoOn Oct. 9, 2025, the Internal Revenue Service (IRS) released Revenue Procedure 2025-32, which officially increased the maximum Health Flexible Spending Account (FSA) contribution limit to $3,400 for calendar year 2026. The allowable amount of carry-over for FSA plans that have adopted a carry-over provision has been increased to $680 effective for the 2026 calendar year.

HSA Contributions

Yes/And: Our Take

Yes, FSA limits are increasing, and that doesn’t mean every organization needs to raise them. Organizations who want to raise their FSA limit should contact their M3 Client Executive, or the administrator of their Flexible Spending Account plan, to determine how to move forward.


Vol. 69, Issue 51
Thursday, December 18, 2025

GUEST COLUMN: Compliance FYI: IRS Announces Health FSA Limits for 2026

By M3 Insurance, WHA’s Premier Partner

Compliance, Employee Benefits

M3 logoOn Oct. 9, 2025, the Internal Revenue Service (IRS) released Revenue Procedure 2025-32, which officially increased the maximum Health Flexible Spending Account (FSA) contribution limit to $3,400 for calendar year 2026. The allowable amount of carry-over for FSA plans that have adopted a carry-over provision has been increased to $680 effective for the 2026 calendar year.

HSA Contributions

Yes/And: Our Take

Yes, FSA limits are increasing, and that doesn’t mean every organization needs to raise them. Organizations who want to raise their FSA limit should contact their M3 Client Executive, or the administrator of their Flexible Spending Account plan, to determine how to move forward.