IRS releases 2026 inflation adjustments, including FSA maximums

The IRS issued Rev. Procedure 2025-32 listing certain tax inflation adjustments for a wide variety of benefits arrangements, including health FSA contribution limits, qualified transportation and parking benefits, qualified small employer health reimbursement arrangements (QSEHRAs), the small employer health insurance credit and other adjustments for the 2026 tax year. These adjustments are outlined below. Employers providing any of the applicable arrangements need to ensure amounts are adjusted and communicated to employees, and plan documents are updated accordingly.

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