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Yesterday, the IRS announced an increase in the contribution limit for Medical Spending Accounts and Limited-use MSAs for 2026. The limit increased from $3,300 to $3,400. Employees who are eligible to contribute to an MSA can enroll through the end of open enrollment, which is Friday, October 31. The deadline for elections will not be extended, because the new limit was announced before the end of open enrollment.
If you have already submitted your open enrollment elections, you can change your MSA election amount or enroll in an MSA until Friday, October 31. Log in to MyBenefits to change your contribution amount or enroll. If your benefits administrator has approved your transaction, you must complete a Notice of Election, sign it and return it to your benefits administrator by Friday, October 31. Employers must submit NOEs to PEBA by Friday, October 31.
The IRS also increased in the carryover amount of unused funds for 2026. The maximum carryover amount increased from $660 to $680. This means you can carry over into 2027 up to $680 in unused funds from your account. You will forfeit funds over $680 left in your account after the March 31, 2027, reimbursement deadline.
If you have any questions, please contact your benefits administrator.
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