The Internal Revenue Service has announced that the Healthcare Flexible Spending Account (FSA) contribution limit will increase to $3,500 for 2027, up from $3,400 in 2026. The Dependent Care FSA limit remains $7,500 for 2027.
The 2027 Health Savings Account (HSA) contribution limits have also increased to $4,500 for self-only coverage and $9,000 for family coverage. Employees age 55 and older may contribute an additional $1,000 catch-up contribution.
Employees who want to take advantage of the increased limits must take action during Open Enrollment. Log in to HCM, select the Open Enrollment tile, and update your 2027 contribution election.
Case Western Reserve University has passive Open Enrollment, which means that if you take no action, your current 2026 benefit elections will generally continue for 2027. Your FSA or HSA contribution will not automatically increase to the new maximum simply because the IRS limit has increased.
