You can contribute more to the Flexible Spending Account (FSA) in 2026 due to recent legislation known as the One Big Beautiful Bill Act. The annual contribution limit for the Dependent Care FSA (DCFSA) will increase from $5,000 to $7,500 per household, which means you can set aside more pre-tax dollars to cover eligible dependent care expenses like daycare, preschool, and eldercare—helping you save for caregiving costs while reducing taxable income. However, remember to estimate your expenses carefully, because unused DCFSA funds do not carry over to the following year. 

The annual contribution limit for General Purpose and Limited Purpose FSAs is increasing from $3,200 to $3,300. You can carryover $660 in unused 2026 FSA funds into 2027.

Review your FSA options during Open Enrollment and consider taking advantage of these new limits to maximize your savings.