December 2025 Newsletter

2026 Benefit Plan Limits and Thresholds

With a new year comes new benefit plan limits and thresholds as prescribed by the IRS.

Below is a reference guide for many of the most common plan limits and thresholds for 2026:

401(k) Plan Limits

Maximum employee elective deferral                                   $24,500 (+$1,000 change)

Employee catch-up contribution (age 50 or older)               $8,000 (+500 change)

HSA and HDHP Limits

HSA contribution limit                      Self-only                     $4,400 (+100 change)

(employer + employee)                      Family                        $8,750 (+200 change)

HSA-Compatible

HDHP deductibles                             Self-only                     $1,700 (+50 change)

                                                            Family                        $3,400 (+100 change)

HSA-Compatible

HDHP max. out-of-pocket                 Self-only                     $8,500 (+200 change)

                                                            Family                        $17,000 (+100 change)

Health FSA and Limited Purpose FSA Limits                            

Maximum salary deferral                                                      $3,400 (+100 change)

Maximum rollover amount                                                    $680 (+20 change)

Dependent Care FSA Limits

Maximum salary deferral                                                     

Single taxpayers and married couples filing jointly             $7,500

Married couples filing separately                                          $3,750

Qualified Small Employer Reimbursement Arrangements (QSEHRAs)

Maximum payments and reimbursements    Self-only         $6,450

                                                                        Family            $13,100

Commuter Transit and Parking Limits (monthly limits)

Transit passes/van pool services                                           $340

(employee + employer)

Qualified Parking                                                                   $340

Adoption Assistance

Excludable Amount                                                               $17,670

Phase-out begins                                                                    $265,080

Phase-out complete                                                                $305,080

Earnings subject to Social Security Payroll Tax

Maximum earnings                                                                $184,500