2026 FSA Contribution Limits
Flexible Spending Account limits are set by the IRS and your employer's cafeteria plan. For 2026:
| FSA Type | 2026 Limit | Carryover / Grace Period |
|---|---|---|
| Healthcare FSA | $3,400 per employee | Up to $680 may carry over (if your employer allows it) |
| Dependent Care FSA | $7,500 per household ($3,750 if married filing separately) | No federal carryover; some plans offer a grace period instead |
The Dependent Care FSA limit jumped significantly for 2026 — from $5,000 to $7,500 per household — under the One Big Beautiful Bill Act (OBBBA). If you haven't updated your election since before this change, you may be leaving tax-free savings on the table.
Healthcare FSA vs. Dependent Care FSA
A Healthcare FSA reimburses out-of-pocket medical, dental, and vision expenses — copays, prescriptions, eyeglasses, and more — for you and your dependents. A Dependent Care FSA (sometimes called a DCFSA or Dependent Care Assistance Program) reimburses childcare or eldercare expenses that let you (and your spouse, if married) work or look for work, such as daycare, preschool tuition, or a nanny. They're separate accounts with separate limits, and you can contribute to both if your employer offers them.
Worked Example
2026 limit: $7,500 (household, since you're not filing separately)
Already elected: $3,000
Remaining room: $7,500 − $3,000 = $4,500 you can still elect this plan year, if your employer's open enrollment allows a mid-year change (most require a qualifying life event).
Understanding "Use It or Lose It"
Unlike an HSA, FSA funds generally don't roll over indefinitely. Your employer's plan may offer one of two relief options: a carryover (currently capped at $680 for Healthcare FSAs) that lets you move a limited amount into the next plan year, or a grace period of up to 2.5 extra months to spend the current year's funds. A plan can offer one or the other, not both. Dependent Care FSAs are not eligible for the IRS carryover rule, though some employers offer a grace period.
Frequently Asked Questions
Generally no — a standard Healthcare FSA is considered "other health coverage" that disqualifies you from HSA eligibility. Some employers offer a "Limited Purpose FSA" (covering only dental and vision) that can be paired with an HSA instead.
Without a carryover or grace period provision in your plan, unused Healthcare FSA funds are forfeited — this is the "use it or lose it" rule. Check your plan documents or ask HR which relief option (if any) your employer offers.
The One Big Beautiful Bill Act (OBBBA) raised the Dependent Care FSA limit from $5,000 to $7,500 per household starting in 2026 — the first change to this limit in decades, since it isn't automatically adjusted for inflation like the Healthcare FSA limit.
Only if you experience an IRS-recognized "qualifying life event" — such as marriage, divorce, birth or adoption of a child, or a change in employment status — or during your employer's annual open enrollment period.