2027 IRS Benefit Limits for FSAs, HSAs, HRAs and 401(k) Plans
Reading Time: 6 minutes Last updated: November 6, 2026. We update this page as the IRS and Social Security Administration release each figure.
IRS benefit limits are the annual dollar caps on what employees and employers can put into tax-advantaged accounts such as health and dependent care FSAs, HSAs, HRAs, commuter benefits and retirement plans. Most limits are adjusted for inflation each year, and the IRS releases them in stages between May and November. Below are the 2027 limits the government has published so far, next to the 2026 limits, with a source for every number.
2027 vs 2026 benefit limits at a glance
| Limit | 2027 | 2026 |
|---|---|---|
| Health FSA salary reduction limit | $3,500 | $3,400 |
| Health FSA maximum carryover | $700 | $680 |
| Dependent care FSA (per household) | $7,500 | $7,500 |
| Dependent care FSA (married filing separately) | $3,750 | $3,750 |
| HSA contribution, self-only coverage | $4,500 | $4,400 |
| HSA contribution, family coverage | $9,000 | $8,750 |
| HSA catch-up contribution (age 55 and older) | $1,000 | $1,000 |
| HDHP minimum deductible, self-only / family | $1,750 / $3,500 | $1,700 / $3,400 |
| HDHP out-of-pocket maximum, self-only / family | $8,700 / $17,400 | $8,500 / $17,000 |
| Excepted benefit HRA | $2,250 | $2,200 |
| QSEHRA, self-only / family | $6,700 / $13,550 | $6,450 / $13,100 |
| Transit and commuter vehicle (monthly) | $350 | $340 |
| Qualified parking (monthly) | $350 | $340 |
| 401(k), 403(b) and governmental 457(b) employee deferral | Not yet announced | $24,500 |
| Catch-up contribution, age 50 and older | Not yet announced | $8,000 |
| Catch-up contribution, ages 60 to 63 | Not yet announced | $11,250 |
| SIMPLE IRA and SIMPLE 401(k) deferral | Not yet announced | $17,000 |
| IRA contribution / IRA catch-up (age 50 and older) | Not yet announced | $7,500 / $1,100 |
| Defined contribution annual additions limit, 415(c) | Not yet announced | $72,000 |
| Highly compensated employee threshold | Not yet announced | $160,000 |
| Key employee threshold (top-heavy testing) | Not yet announced | $235,000 |
| Social Security wage base | $192,300 | $184,500 |
When the remaining 2027 limits will be released
The IRS has not yet released two documents that set most of the open figures:
- The annual inflation-adjustment revenue procedure for tax year 2027. This sets the health FSA limit and carryover, QSEHRA limits and commuter benefit limits. The 2026 version (Rev. Proc. 2025-32) came out October 9, 2025.
- The annual retirement plan cost-of-living notice for 2027. This sets 401(k), 403(b), 457(b), SIMPLE, IRA, 415(c), highly compensated employee and key employee limits. The 2026 version (Notice 2025-67) came out November 13, 2025.
Both are usually published in October or November. We will add each 2027 figure here when the IRS posts it.
Health FSA limits for 2027
A health flexible spending account (FSA) lets employees set aside pre-tax pay through a cafeteria plan for eligible medical expenses.
- 2027 salary reduction limit: $3,500. The 2026 limit is $3,400.
- 2027 maximum carryover: $700. For 2026 plan years, a plan that allows carryover can let employees carry up to $680 of unused funds into the next plan year.
The limit applies per employee, per employer. A plan can offer either a carryover or a grace period of up to two and a half months, but not both.
Dependent care FSA limits for 2027
The One Big Beautiful Bill Act (Public Law 119-21, section 70404) raised the dependent care assistance exclusion from $5,000 to $7,500 per household ($3,750 for married employees filing separately) starting in 2026. This amount is set by statute and is not adjusted for inflation, so it stays at $7,500 for 2027 unless Congress changes it.
- 2027 limit: $7,500 per household ($3,750 married filing separately)
- 2026 limit: $7,500 per household ($3,750 married filing separately)
The higher limit applies only if your plan document allows it. If your dependent care plan still caps elections at $5,000, amend it before open enrollment if you want to offer the full $7,500.
HSA and HDHP limits for 2027
A health savings account (HSA) is a tax-advantaged account for people covered by a high deductible health plan (HDHP). The IRS released the 2027 HSA and HDHP figures in Rev. Proc. 2026-24.
| HSA and HDHP limit | 2027 | 2026 |
|---|---|---|
| HSA contribution, self-only | $4,500 | $4,400 |
| HSA contribution, family | $9,000 | $8,750 |
| HSA catch-up (age 55 and older) | $1,000 | $1,000 |
| HDHP minimum deductible, self-only | $1,750 | $1,700 |
| HDHP minimum deductible, family | $3,500 | $3,400 |
| HDHP out-of-pocket maximum, self-only | $8,700 | $8,500 |
| HDHP out-of-pocket maximum, family | $17,400 | $17,000 |
The HSA contribution limit covers employee and employer contributions combined. The $1,000 catch-up is set by statute and does not change with inflation.
Direct primary care: Starting in 2026, a direct primary care service arrangement does not disqualify someone from HSA eligibility if the monthly fees are $150 or less ($300 if the arrangement covers more than one person). Rev. Proc. 2026-24 confirms those caps stay at $150 and $300 for 2027.
HRA limits for 2027
Excepted benefit HRA
An excepted benefit HRA lets an employer reimburse certain medical expenses, such as dental, vision or short-term coverage premiums, alongside a traditional group health plan.
- 2027 limit: $2,250 for plan years beginning in 2027
- 2026 limit: $2,200
QSEHRA
A qualified small employer HRA (QSEHRA) lets employers with fewer than 50 full-time and full-time equivalent employees that do not offer a group health plan reimburse employees for individual health coverage and medical expenses.
- 2027 limits: $6,700 self-only / $13,550 family
- 2026 limits: $6,450 self-only, $13,100 family
Commuter benefit limits for 2027
Qualified transportation benefits let employees pay for transit passes, vanpooling and work parking with pre-tax dollars.
- Transit pass and commuter highway vehicle, 2027: $350 per month (2026: $340 per month)
- Qualified parking, 2027: $350 per month (2026: $340 per month)
Retirement plan limits for 2027
The IRS has not yet published the 2027 retirement plan limits. Here are the 2026 limits from IRS Notice 2025-67 for planning. We will add the 2027 figures when the IRS releases them.
| Retirement limit | 2027 | 2026 |
|---|---|---|
| 401(k), 403(b), governmental 457(b) and Thrift Savings Plan employee deferral | Not yet announced | $24,500 |
| Catch-up contribution, age 50 and older | Not yet announced | $8,000 |
| Catch-up contribution, ages 60 to 63 | Not yet announced | $11,250 |
| Roth catch-up wage threshold (prior-year FICA wages) | Not yet announced | $150,000 |
| SIMPLE IRA and SIMPLE 401(k) deferral | Not yet announced | $17,000 ($18,100 for certain plans) |
| SIMPLE catch-up, age 50 and older | Not yet announced | $4,000 ($3,850 for certain plans) |
| SIMPLE catch-up, ages 60 to 63 | Not yet announced | $5,250 |
| IRA contribution | Not yet announced | $7,500 |
| IRA catch-up, age 50 and older | Not yet announced | $1,100 |
| Defined contribution annual additions limit, 415(c) | Not yet announced | $72,000 |
| Annual compensation limit, 401(a)(17) | Not yet announced | $360,000 |
| Highly compensated employee threshold | Not yet announced | $160,000 |
| Key employee threshold (top-heavy testing) | Not yet announced | $235,000 |
Under SECURE 2.0, employees who earned more than the Roth catch-up wage threshold in the prior year must make their catch-up contributions as Roth contributions. For 2026 catch-ups, that threshold is $150,000 of 2025 FICA wages.
Social Security wage base for 2027
The Social Security Administration announced on October 14, 2026, that the maximum earnings subject to the 6.2% Social Security tax will be $192,300 in 2027, up from $184,500 in 2026. The 1.45% Medicare tax has no wage cap. Update payroll systems so Social Security withholding stops at the new wage base.
What employers should do before January 1
- Update payroll and benefits systems with the confirmed 2027 HSA, HDHP, excepted benefit HRA and Social Security wage base figures.
- Check that your 2027 HDHP deductibles and out-of-pocket maximums meet the new IRS thresholds so employees stay HSA-eligible.
- Confirm whether your dependent care FSA plan document allows $7,500 elections, and amend it if it does not.
- Watch for the IRS health FSA, QSEHRA, commuter and retirement limits, and load them as soon as they are released.
- Review your cafeteria plan for carryover or grace period terms and update the carryover amount once the IRS announces it.
- Confirm your payroll provider can apply the SECURE 2.0 Roth catch-up rule for employees above the wage threshold.
- Send employees open enrollment materials that show the new limits.
Let Catapult handle your spending accounts
Catapult administers FSAs, HSAs and HRAs for employers, including setup, enrollment, claims processing and IRS compliance testing. We keep your plans in line with each year’s IRS limits so your team does not have to track every change.
Sources
- IRS, Rev. Proc. 2026-24: 2027 HSA, HDHP, direct primary care and excepted benefit HRA amounts
- IRS, Rev. Proc. 2025-19: 2026 HSA, HDHP and excepted benefit HRA amounts
- IRS, Rev. Proc. 2025-32: 2026 health FSA, carryover, commuter and QSEHRA amounts (announced in IR-2025-103, October 9, 2025)
- IRS, Notice 2025-67: 2026 retirement plan and IRA limits (announced in IR-2025-111, November 13, 2025)
- IRS, Correction to the dependent care benefits exclusion amount: $7,500 under Public Law 119-21, section 70404
- U.S. Code, 26 U.S.C. 223: HSA catch-up contribution
- Social Security Administration, 2027 Cost-of-Living Adjustment Fact Sheet and Contribution and Benefit Base
This page is general information, not tax or legal advice. Confirm plan-specific decisions with your plan documents and advisors.
Catapult is an employers association that has helped organizations solve workplace challenges since 1958. More than 2,300 member employers rely on the Catapult team for HR advice, employment law guidance, compensation research, and leadership training. Articles published under the Catapult HR Team byline are written and fact checked by that team.
