During 2026 open enrollment season for healthcare coverage, the Internal Revenue Service (IRS) reminds employers and employees that employees who choose to participate in Health Flexible Spending Arrangements (FSAs) can contribute up to $3,400 through payroll deductions to use tax-free dollars to pay for qualified medical expenses not covered by other health plans. This is an increase of $100 over 2025. For FSAs that permit the carryover of unused amounts, the maximum 2025 carryover to 2026 is $680. For more information, see the IRS press release, Notice 2026-5 on expanded HSA eligibility, or see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.