The Economic Times

Using your FSA wisely? Up to $3,400 can be set aside pre-tax in 2026, and millions of workers forget to claim every single dollar of it

The 2026 FSA limit is going up to $3,400. That's $100 more than the 2025 limit. For workers who expect regular medical expenses, the higher limit gives them more room to set aside money before federal income taxes are calculated. The contribution is taken from salary through the employer's plan and can be used for eligible health care costs.