Starting january 1, 2026, the annual dependent care flexible spending account (fsa) contribution limit will increase from $5,000 to $7,500 On october 9th, the irs announced several inflation adjustments for 2026, including adjustments to the annual contribution and carryover limits for healthcare flexible spending accounts and the. Learn how the new contribution limits, carryover options, and the one big beautiful bill (obbb) act impact benefit planning for employers and employees alike.
Brenda Trindade @brendatrindade (adultnode.com) : Solofun171
1, 2026, the obbb act increases the maximum annual contribution limit for dependent care fsas to $7,500 (or $3,750 for mfs).
After nearly four decades without a permanent change, the dependent care fsa (dcfsa) limit in 2026 is set to rise, giving working parents meaningful tax savings and employers a timely opportunity to refresh their benefit offerings.
Effective january 1, 2026, irs code section 129 is updated to allow Families to contribute up to $7,500 annually to a dependent care fsa—up from the previous $5,000. A dependent care fsa helps cover eligible child care or adult day care expenses so you can work. A new gop tax law lifts the dependent care fsa limit to $7,500 in 2026
Learn how to maximize savings and weigh the tax credit.