Employee benefits are frequently subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits:
- High-deductible health plans (HDHPs) and health savings accounts (HSAs); Health flexible spending accounts (FSAs);
- 401(k) plans; and
- Transportation fringe benefit plans.
The IRS typically announces the dollar limits that will apply for the next calendar year before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.
This Compliance Overview includes a chart of key employee benefits limits for 2026. It also includes the 2025 limits for comparison purposes. Most of these limits increase for 2026. Although the contribution limit for dependent care FSAs is not indexed for inflation, the One Big Beautiful Bill Act increased the limit, effective for 2026.
| Limit | 2025 | 2026 | Change |
|
HSA Contribution Limit |
|||
| Self-only | $4,300 | $4,400 | Up $100 |
| Family | $8,550 | $8,750 | Up $200 |
| Catch-up contributions* | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | |||
| Self-only | $1,650 | $1,700 | Up $50 |
| Family | $3,300 | $3,400 | Up $100 |
| HDHP Out-of-Pocket Maximum | |||
| Self-only | $8,300 | $8,500 | Up $200 |
| Family | $16,600 | $17,000 | Up $400 |
| Health FSA | |||
| Limit on employees’ pre-tax contributions | $3,300 | $3,400 | Up $100 |
| Carryover limit | $660 | $680 | Up $20 |
| Dependent Care FSA* | |||
|
Tax exclusion |
$5,000 ($2,500 if
married and filing taxes separately) |
$7,500 ($3,750 if
married and filing taxes separately) |
Up $2,500 ($1,250 if married and filing taxes separately) |
|
Limit 2025 2026 Change |
|||
|
Transportation Fringe Benefits (Monthly Limits) |
|||
| Transit pass and vanpooling (combined) | $325 | $340 | Up $15 |
| Parking | $325 | $340 | Up $15 |
|
Excepted Benefit HRA |
|||
| Limit on employer contributions | $2,150 | $2,200 | Up $50 |
|
401(k) Contributions |
|||
| Employee elective deferrals | $23,500 | $24,500 | Up $1,000 |
| Catch-up contributions | $7,500 ($11,250 for
employees ages 60-63) |
$8,000 ($11,250 for
employees ages 60-63) |
Up $500 (no change for employees ages 60-63) |
| Limit on total contributions | $70,000 | $72,000 | Up $2,000 |
|
Adoptions Assistance Benefits |
|||
| Tax exclusion | $17,280 | $17,670 | Up $390 |
*Limits that are not adjusted for inflation
Links and Resources
- IRS Revenue Procedure 2025-19: 2026 limits for HSAs and HDHPs
- IRS Notice 2025-67: 2026 limits for retirement plans
- IRS Revenue Procedure 2025-32: 2026 limits for health FSAs, adoption assistance and transportation fringe benefits
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
