Annual Enrollment: 2026 tax-free spending account limits

As you prepare for 2026 benefits enrollment, be aware of important updates about limits to tax-advantaged accounts.

Contribution limits are increasing for both flexible spending accounts and health savings accounts. Now is a good time to review which health plans the tax-advantaged spending accounts pair with, and how they fit into your overall benefits strategy.

Understanding your spending account options

The university offers several tax-advantaged accounts to help you save on eligible expenses. While all accounts allow you to set aside funds on a pre-tax basis, they have different conditions.

Available no matter your health plan

Dependent care flexible spending account, or DCFSA:

• Funds are used for eligible child care expenses such as after-school care and summer day camp.
• Updated for 2026: You can contribute up to $7,500 per family ($3,750 each if married and filing taxes separately).
• Grace period: After the plan year ends on Dec. 31, you have two-and-a-half months to incur eligible expenses and use remaining funds.
• Claims deadline: You have until April 30 of the following year to submit claims; remaining DCFSA funds will then be forfeited.
• The DCFSA, Child Care Voucher, and Backup Care imputed income combine to reach the IRS limit of $7,500; exceeding funds are reported as taxable income.

Available with the JHU CareFirst Core and Enhanced PPO plans

Health care flexible spending account, or FSA:

• Funds are used for eligible medical, dental, and vision expenses.
• Updated for 2026: You can contribute up to $3,400.
• Balance rollover: Unused funds between $30 and $680 roll over into the next plan year.
• Claims deadline: You have until April 30 of the following year to submit your claims; unused FSA funds under $30 or over $680 will then be forfeited.
• You can also elect the FSA if you're enrolled in the Kaiser Permanente HMO (which is closed to new enrollments).

Available only with the JHU CareFirst high-deductible health plan

Health savings account, or HSA:

• Funds are used for eligible medical, dental, and vision expenses.
• If you earn $60,000 or less a year, JHU will add to your HSA, depending on your salary: $40,000 or less: $500 individual or $1,000 family; $40,001 to $60,000: $250 individual or $500 family.
• Updated for 2026: You can contribute up to $4,400 per individual and up to $8,750 per family (including JHU contribution).
• Funds roll over from year to year. You own the funds forever, even if you change jobs.
• Once your account has reached a minimum balance of $1,000, you can invest your funds in a variety of mutual funds.
• The IRS definitions of additional eligibility criteria on the HSA webpage.

Limited purpose flexible spending account:

• Funds are used for eligible dental and vision expenses.
• Updated for 2026: You can contribute up to $3,400.
• Balance rollover: Unused funds between $30 and $680 roll over into the next plan year.
• Claims deadline: You have until April 30 of the following year to submit your claims; unused funds under $30 or over $680 will then be forfeited.

Need help choosing?

Ask ALEX, your interactive benefits counselor, to explore your benefits options and get personalized recommendations. Visit myalex.com/jhu to get started.

Questions?

Contact the Benefits Service Center at benefits@jhu.edu or 410-516-2000.