On November 5, 2026, the IRS issued Rev. Proc. 2026-35, which announces the 2027 indexed limits for certain health and welfare benefits. This is in addition to the limits the IRS announced in Rev. Proc. 2026-24 on May 29, 2026.
Health and Welfare Limit Changes
| 2026 | 2027 | |
| HSA Contributions | $4,400 for self-only coverage $8,750 for family coverage | $4,500 for self-only coverage $9,000 for family coverage |
| HSA-Compatible HDHP Deductible | $1,700 for self-only coverage $3,400 for family coverage | $1,750 for self-only coverage $3,500 for family coverage |
| HSA-Compatible HDHP Out-of-Pocket Maximum | $8,500 for self-only coverage $17,000 for family coverage | $8,700 for self-only coverage $17,400 for family coverage* |
| Health FSA Salary Reductions | $3,400 | $3,500 |
| Health FSA Carryover | $680 | $700 |
| Monthly Qualified Transportation Fringe Benefits | $340 | $350 |
| Monthly Qualified Parking | $340 | $350 |
| Qualified Adoption Expenses from a Qualified Adoption Assistance Program | $17,670 | $18,250 |
| Employer Contributions to an Excepted Benefit HRA | $2,200 | $2,250 |
* The 2027 ACA out-of-pocket maximums are $12,000 for self-only coverage and $24,000 for family coverage. An HSA-compatible HDHP must comply with the lower HSA out-of-pocket maximums.
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