IRS Releases 2026 Cost-of-Living Adjustments for Health FSAs, Transportation Benefits, & QSEHRAs
The IRS has released the 2026 cost-of-living adjustments (COLAs) for a wide variety of tax-related limits, including limits relating to Qualified High Deductible Health Plan (QHQHP) deductibles, HSA contribution limits, health FSAs, qualified transportation fringe benefits, qualified small employer health reimbursement arrangements (QSEHRAs), and Dependent Care FSAs (DCAP). These limits are summarized in the table below.
Sponsors and administrators of benefits with limits that are changing should determine whether their plans will adopt the increased limits and if so, whether the plan will automatically apply the latest limits or must be amended. Any changes in limits should also be communicated to employees.
