Benefits Verified

2027 health FSA limit $3,500, commuter benefits $350/month, and other fringe limits (Rev. Proc. 2026-35)

Jurisdiction
Federal (US)
Effective date
2027-01-01
Who it covers
Employers offering cafeteria plans, commuter benefits, educational assistance, adoption assistance or QSEHRAs
Status
Verified against an official source

The law, summarized

  • IR-2026-133 dated November 5, 2026 points to Revenue Procedure 2026-35 for the full 2027 inflation adjustments.
  • Health FSA: $3,500 salary reduction under section 125(i); maximum unused carryover $700.
  • Qualified transportation fringe (transit/vanpool) and qualified parking: $350 per month each under section 132(f).
  • Educational assistance exclusion under section 127(a): $5,400. Adoption assistance under section 137: $18,250, phasing out between $273,680 and $313,680 of modified AGI.
  • QSEHRA under section 9831(d): $6,700 self-only / $13,550 family.
  • The 2027 401(k), 403(b), 457 and IRA contribution limits are not in this revenue procedure and were not yet published as of November 8, 2026.
StateHR Take · AI-generated analysis, not legal advice

Who should act: Benefits and payroll teams. Load the 2027 FSA, commuter, educational-assistance, adoption-assistance and QSEHRA caps before open enrollment and the first 2027 payroll. Keep using 2026 401(k) limits until the IRS publishes the separate retirement-plan notice. Confirm the details in the official source before acting.

Generated 2026-11-08T10:30-06:00

Official sources

  • www.irs.gov
    https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2027-taxpayers-continue-to-benefit-from-the-working-families-tax-cuts
  • www.irs.gov
    https://www.irs.gov/pub/irs-drop/rp-26-35.pdf