On November 5, 2026, the Internal Revenue Service announced the tax year 2027 annual inflation adjustments for almost 70 tax provisions, including tax rate schedules, standard deduction amounts and other tax changes. The following are inflation-adjusted limits for health and fringe benefit plans for 2026 and 2027. Some inflation-adjusted amounts were released earlier this year, while others were released this week. The 2027 contribution limits for tax-qualified retirement plans are expected to be announced soon.
| 2026 | 2027 | |
| Health Savings Accounts – HDHP Limits | ||
| HDHP Minimum Annual Deductible – Self Only | $1,700 | $1,750 |
| HDHP Minimum Annual Deductible – Family | $3,400 | $3,500 |
| HDHP Out-of-Pocket Maximum – Self Only | $8,500 | $8,700 |
| HDHP Out-of-Pocket Maximum – Family | $17,000 | $17,400 |
| Health Savings Accounts – Maximum Contribution Limits | ||
| Self Only | $4,400 | $4,500 |
| Family | $8,750 | $9,000 |
| Catch-Up Contributions (age 55 by the end of the year) | $1,000 | $1,000 |
| ACA Out-of-Pocket Maximum | ||
| Self Only | $10,600 | $12,000 |
| Embedded Individual Max within Family Coverage | $10,600 | $12,000 |
| Family | $21,200 | $24,000 |
| Transportation Fringe Benefits – Monthly Limits | ||
| Parking | $340 | $350 |
| Transit Passes and Vanpooling (combined) | $340 | $350 |
| FSA Limits | ||
| Health FSA Contribution Limit | $3,400 | $3,500 |
| FSA Carryover Limit | $680 | $700 |
| Dependent Care FSA Contribution Limit | ||
| *Special income tax situations may require a lower limit. | $7,500 | $7,500 |
| Employer Adoption Assistance Exclusion | ||
| Maximum Gross Income Exclusion | $17,670 | $18,250 |
| Maximum AGI Limit (after which exclusion phases out) | $265,080 | $273,680 |
| Employer Education Assistance | ||
| Annual Maximum | $5,250 | $5,400 |
| Qualified Small Employer HRA – Maximum Annual Contribution Limits | ||
| All Coverage (other than family) | $6,450 | $6,700 |
| Family Coverage | $13,100 | $13,550 |
| Excepted Benefit HRA Maximum | ||
| Maximum | $2,200 | $2,250 |
| Failure to File Correct Information Returns (§6721) – Per Return Penalty | ||
| Failure to File | $340 | $360 |
| Corrected w/in 30 Days | $60 | $70 |
| Corrected before August 1 of Applicable Year | $130 | $140 |
| Failure to Furnish Correct Payee Statements (§6722) – Per Return Penalty | ||
| Failure to Furnish | $340 | $360 |
| Corrected w/in 30 Days | $60 | $70 |
| Corrected before August 1 of Applicable Year | $130 | $140 |
| Trump Account Contribution Plan | ||
| Employee & Employer Limit (combined) per Employee | $2,500 | $2,500 |
| Total Annual Limit per Child | $5,000 | $5,000 |
| Social Security Wage Base | ||
| $184,500 | $192,300 | |
Nixon Peabody’s Employee Benefits & ERISA lawyers are well-equipped to help employers and plan administrators navigate inflation-related tax adjustments and stay compliant with evolving employee benefits regulations. For more information on this content, please contact your Nixon Peabody attorney or the author of this alert.