Updated September 4, 2026. Quick answer. The healthcare Flexible Spending Account salary-reduction limit is $3,400 for 2026, with a maximum carryover into 2027 of $680. The official 2027 limit is not yet announced (it’s set inside the same October/November IRS revenue procedure as dozens of other figures), but benefits consultancy Mercer published a named, dated 2027 projection on June 11, 2026: $3,500 for the contribution limit and $700 for the carryover, built from actual chained-CPI data through June plus Mercer’s own estimate for July and August.
What’s actually settled, vs. still open
Settled for 2026 (Rev. Proc. 2025-32, §4.15, quoted directly): “the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,400. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $680.”
Projected, not official, for 2027: Mercer’s own June 11, 2026 estimate of $3,500 / $700, published in “Mercer projects 2027 transportation and health FSA limits.” The carryover cap is a regulatory rule (20% of the current year’s contribution limit), not a separately indexed statutory figure, which is why it tracks the contribution limit closely.
A limit tells you the ceiling, not the right amount
How much to put in, which account to use and what it displaces elsewhere are separate questions from the limit itself, and an adviser can work through them alongside the rest of your savings.
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The numbers, year by year
| Plan year | Contribution limit | Carryover limit |
|---|---|---|
| 2022 | $2,850 | $570 |
| 2023 | $3,050 | $610 |
| 2024 | $3,200 | $640 |
| 2025 | $3,300 | $660 |
| 2026 | $3,400 | $680 |
| 2027 (Mercer projection, June 11, 2026) | $3,500 | $700 |
How Mercer builds the estimate
Mercer states its own methodology: applying the Internal Revenue Code’s cost-of-living adjustment method to the Chained CPI-U values actually observed through June, plus Mercer’s own projected values for July and August, the same two-month window the IRS itself uses to close out the measurement before publishing the official figure each autumn. Treat it as an early, attributed estimate, not the final number.
Sources
2026 figures: IRS Revenue Procedure 2025-32, §4.15, published 2025-10-09, read at irs.gov/pub/irs-drop/rp-25-32.pdf on 2026-09-04. Statute: 26 U.S.C. §125(i). 2027 projection: Mercer, “Mercer projects 2027 transportation and health FSA limits,” published 2026-06-11, read at mercer.com on 2026-09-04.
This page is updated the day the official figure is announced, and any projection above will be struck through rather than deleted, so the record of what was projected vs. what actually happened stays visible. See the 2027 numbers hub for every figure this program tracks, projected vs. official. General information, not tax or legal advice.