Health Flexible Spending Account (FSA)
A health FSA lets employees be reimbursed for medical expenses. You fund it through a salary reduction you elect under your employer's cafeteria plan, up to an annual dollar limit.
Definition from IRS Pub. 969.
2026 figures, with sources
| Figure | Value | Source |
|---|---|---|
| Salary reduction limit, plan years beginning in 2026 | $3,400 | Rev. Proc. 2025-32, Section 4.15 |
| Maximum carryover into a plan year beginning in 2026 (if the plan allows carryover) | $680 | Rev. Proc. 2025-32, Section 4.15 |
| Maximum carryover, 2025 plan years | $660 | IRS Pub. 969, Contributions to an FSA |
| 2027 salary reduction limit | Not published when checked | The annual inflation Rev. Proc. that sets the 2027 section 125(i) limit was not on irs.gov when checked (the newest Rev. Procs. numbered 2026-24 through 2026-32 cover other items). Checked 2026-10-20. |
What the IRS says
- If the cafeteria plan permits the carryover of unused amounts, the most that can carry over is $680 for plan years beginning in 2026. (Rev. Proc. 2025-32, Section 4.15)
- Coverage by a general-purpose health FSA generally makes you ineligible to contribute to an HSA. (IRS Pub. 969, Other employee health plans)
- Pay you redirect into a health FSA. Cafeteria plan salary reductions for a health FSA are capped at $3,400 for plan years beginning in 2026. (IRS Pub. 15-B, Cafeteria Plans: Contribution limit on a health FSA; Rev. Proc. 2025-32, Section 4.15)
Run your own numbers
Can you buy it with an FSA or HSA?
Our typical verdicts from the stipend eligibility lookup. Employer plans differ, so each page has a message you can send HR.
| Item | Verdict |
|---|---|
| Therapy Sessions | Typically Yes |
| Apple Watch | Depends on Employer |
| Gym Membership | Depends on Employer |
| Herman Miller Aeron Chair | Depends on Employer |
| Meditation App Subscription | Depends on Employer |
| Oura Ring | Depends on Employer |
| Peloton Bike | Depends on Employer |
| Standing Desk | Depends on Employer |
| Under-Desk Walking Pad | Depends on Employer |
| AirPods Pro | Typically No |
| ChatGPT Plus Subscription | Typically No |
| Coursera Plus Subscription | Typically No |
| iPad | Typically No |
| MasterClass Subscription | Typically No |
| PMP Certification | Typically No |
Guides and products
- FSA/HSA Eligible Items: Complete Guide to Spending Your Health Account (2026)
- Can You Use an FSA for a Gym Membership? (The Real Answer)
- FSA-Eligible Fitness Equipment: What You Can Actually Buy
- Mental Health Apps You Can Pay for With Your HSA
- The Best FSA Eligible Items to Buy Before Your Funds Expire
- The Best FSA Eligible Sleep Aids to Buy in 2026
- The Best FSA Eligible First Aid Kits to Buy in 2026
- The Best HSA Purchases to Make With Your Health Savings Account
- Shop FSA / HSAProducts picked for this kind of benefit.
Related benefits
Sources and date checked
Every number and rule on this page comes from the pages below, read on October 14, 2026. If a source changes, this page can be out of date until it is rechecked.
- IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans (for 2025 returns, shows 2026 limits)
Definition. Maximum carryover, 2025 plan years: $660. Other employee health plans.
- Rev. Proc. 2025-32 (2026 inflation adjustments: tax brackets, standard deduction, section 125 and 132(f))
Salary reduction limit, plan years beginning in 2026: $3,400. Maximum carryover into a plan year beginning in 2026 (if the plan allows carryover): $680. Section 4.15.
- IRS Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits
Cafeteria Plans: Contribution limit on a health FSA.
Not tax advice. This page is general information built from IRS publications, not advice for your situation. Plan rules, state law and your own facts can change the answer. Confirm with your plan administrator or a tax professional before you act.