American workers can put up to $3,400 into a health Flexible Spending Account (FSA) in 2026. The money can help cover eligible medical expenses while reducing the wages subject to federal income tax. Yet the higher limit is only useful if employees understand how these accounts work and remember to use the money before their plan's deadline.
The IRS has also announced its 2026 tax adjustments, including changes connected to the One Big Beautiful Bill Act.
