2026 HSA/FSA/Commuter Contribution Limits
The 2026 annual limit on HSA contributions for an individual with self-only coverage under a qualified high-deductible health plan (QHDHP) will increase to $4,400 (up from $4,300 in 2025), and family coverage will increase to $8,750 (up from $8,550 in 2025), while the age 55 HSA catch-up contribution maximum remains the same at $1,000. The 2026 annual dollar limit on employee contributions to a Health Care FSA will increase to $3,400 (up from $3,300 in 2025), and the maximum carryover amount will increase to $680 (up from $660 in 2025). For the first time since 1986, the Dependent Care FSA employee contribution limit will increase from $5,000 to $7,500 ($3,750 per spouse for married couples filing separately). For employers who offer Commuter FSA programs, the monthly pre-tax contribution limit will increase to $340 (up from $325 in 2025). If you offer any of these pre-tax programs to your employees, be sure to work with your Stumm Insurance Service Team to adjust your plans accordingly.
ACA Affordability Threshold Change for 2026
The IRS has announced that employer-sponsored health coverage will satisfy the ACA “affordability test” for large employers in the 2026 year if the employer offers a Single coverage option that does not exceed 9.96% of an employee’s household income, which is an increase to the 2025 rate of 9.02%. To put the new 2026 number in perspective, for a $14/hour worker who works 30 hours a week, an applicable large employer may be penalized under the affordability test if they are charging more than ~$181 per month in 2026 for their least expensive single medical plan (previously ~$164 per month in 2025). If you need help making sure your medical plan meets these requirements now or in the new year, please reach out to your Stumm Insurance Service Team.
Marketplace Exchange Notice Reminder
Since late 2013, the Affordable Care Act (ACA) has been requiring that employers provide a notice to new employees informing them about their state’s health insurance “marketplace”. New hires must receive the notice within 14 days of the employee’s start date. The notice may be distributed electronically or by hard copy, and while there is no requirement to obtain an employee’s signature; an employer may want to track delivery/receipt. This is just a reminder to work a copy of this notice into all the other required forms you consistently provide when onboarding new hires. The required notice template (which has not changed since 2013) can be found at the DOL website.
Client Cloud (Powered by Zywave)
Employee benefit and labor laws continue to provide challenges for employers, so we wanted to remind you of a free service that Stumm provides. You have access to our Client Cloud – a website including a vast array of HR resources and guidance on issues such as compliance, benchmarking, legal questions, labor law, and many other areas. Another popular feature is the Learning Management System (LMS) – a library of video modules for employee training, including harassment, drugs & alcohol, diversity, hiring/termination, cybersecurity, ergonomics, OSHA compliance, HIPAA compliance, and hundreds of others. All information in the Client Cloud is accessed via search function – think of it as a “Google for HR”. If you have not previously taken advantage of this great resource (or do not have your log-in information), please contact your Stumm Service Team to obtain a username and password.
Please note that Stumm Insurance, LLC is “closed” on certain Holidays throughout the year. Your Stumm Insurance Service Team will not be readily available on these dates during this 4th quarter:
● 11/27/2025 Thanksgiving Day
● 11/28/2025 Day After Thanksgiving
● 12/24/2025 Christmas Eve
● 12/25/2025 Christmas Day
● 12/31/2025 New Year’s Eve
Should you have any questions or would like to discuss these or any other topics, please feel free to contact your Stumm Insurance Service Team.