[UCRDBR] Health FSA - IRS Increases 2028 Carryover Limit to $700 for the 2027 Plan Year

[Departmental Benefits Representatives]

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November 9, 2026


To:
Department Benefits Representatives (DBRs)
From:
Central HR Benefits Office on behalf of UC Office of the President
Re:
Health FSA - IRS Increases 2028 Carryover Limit to $700 for the 2027 Plan Year



DBRs, please share this information via your internal listserv.  Please do not reply to this email.  Please send a separate email with questions to benefits at ucr.edu<mailto:benefits at ucr.edu>.



UCOP has advised the Internal Revenue Service (IRS) announced an increase to the maximum Health Flexible Spending Account (Health FSA) carryover limit for the 2027 plan year. The maximum amount participants may carry over from the 2027 plan year into 2028 will increase from $680 to $700.

To clarify, the following carryover limits apply:

Plan Year
       Maximum Carryover
2026 to 2027
       $680
2027 to 2028
       $700

The Health FSA carryover provision does not apply to Dependent Care Flexible Spending Accounts (DepCare FSAs).

What this means for employees:

  *   Employees participating in the 2027 Health FSA may carry over up to $700 in unused funds into the 2028 plan year, subject to applicable plan rules.
  *   Employees have until April 15, 2028, to submit claims for eligible expenses incurred during the 2027 plan year. Any unused funds exceeding the $700 carryover limit will be forfeited after the claims submission deadline.
  *   The $680 carryover limit remains in effect for unused funds carried over from 2026 into 2027.


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