Benefits Open Enrollment Tips: 5 Things to Know About 2026 IRS Contribution Limits for Flexible Spending Accounts (FSAs) From FSA Store®

Increases to contribution limits and carryover amounts give individuals and families more opportunity to save money and pay for eligible healthcare products and services

DALLAS, Oct. 16, 2025 /PRNewswire/ -- The Internal Revenue Service (IRS) recently announced increases to the 2026 contribution limits and carryover limits for flexible spending accounts (FSAs), which provide essential financial support for healthcare expenses for more than 35 million Americans. FSAstore.com^®, the first and leading online store dedicated exclusively to selling FSA-eligible products, is educating consumers about the new limits and five little-known FSA facts that will help them make informed choices during this benefits open enrollment period, and wise use of their funds in the coming year.

"The cost of healthcare continues to increase, causing people to put off care or avoid purchasing necessary medications, which can ultimately have serious long-term health consequences," said Rachel Rouleau, chief compliance officer for Health-E Commerce^®, the parent brand to FSA Store^®. "With increased FSA contribution limits, account holders are further empowered to keep more of their income in their pockets while protecting their household budget from potential unplanned expenses."

As a leader in FSA education, compliance, and ecommerce technology, FSA Store is sharing the following key insights about these tax-free accounts.

What is an FSA? An FSA is a tax-advantaged account that consumers can enroll in through their employer-sponsored benefits program. Employees can contribute to the account through pre-tax payroll contributions and any employer contributions are also tax favored. This reduces the employee's taxable income and helps them pay for a wide range of expenses. FSA-eligible expenses are determined by the Internal Revenue Service.

About the new limit: According to the IRS, the limit for FSA employee contributions will increase from $3,300 in 2025 to $3,400 in 2026. In addition to the contribution limit increases, the amount of unused FSA funds that an employer may allow employees to carry over from year to year will also increase. The carryover amount will increase from $660 in 2025 to $680 in 2026 (the carryover max is always 20% of the current FSA contribution limit). The FSA carryover feature is optional for employers. Account holders should check with their benefits department to confirm if this option is available to them.

Five surprising facts about FSA contributions:

1. The $3,400 limit for 2026 applies on a per FSA account basis. If an account holder switches jobs mid-year, they can elect to contribute the full amount to an FSA at their new employer, regardless of the amount of claims they had incurred at their previous employer.
2. There is only one FSA contribution limit that applies to both individuals and families. This differs from health savings accounts (HSAs), which have a separate limit for health plan participation as an individual versus two-person/family coverage.
3. If two spouses each have access to their own FSA through their respective employers, they could each elect the maximum of $3,400 for a combined household set-aside of $6,800.
4. The FSA limit does not include the optional carryover amount. For example, if an employer offered a carryover of $660 in 2025, an account holder could have a balance of $4,060 in their FSA in 2026 ($3,400 2026 FSA max + $660 2025 FSA carryover).
5. The FSA contribution limits apply only to pre-tax employee contributions. Employers may contribute to an employee's FSA in excess of the employee contribution maximum.

FSA Store^® offers a free, comprehensive eligibility list that makes it easy to map spending for the remainder of the year to ensure consumers don't leave any tax-free funds on the table due to a missed deadline. FSA Store^® shoppers can also personalize their FSA experience by searching for everyday healthcare needs by product, category, lifestyle or health condition.

To learn more about FSAs, visit the FSA Learning Center at FSAstore.com.

About Health-E Commerce
Health-E Commerce ^®  is the parent brand to FSA Store^® and HSA Store^®, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill™, a popular private-label line of health products through which a portion of every purchase is donated to the Children's Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in advocating for expanded eligibility of important new products and telehealth services within the list of eligible medical expenses.

SOURCE Health-E Commerce