IRS Releases Many Benefit Limits for 2026

Today, October 9th, the Internal Revenue Service announced in Revenue Procedure 2025-32 the annual inflation adjustments for more than 60 tax provisions for 2026, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments: – The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is increased to $3,400. – If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is increased to $680. – The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special… Read More