Guide
Open enrollment 2026: don't roll over last year's numbers
The limits moved this year — your elections didn't. Here is what to actively change during your enrollment window, in order of money left on the table.
Re-elect your Dependent Care FSA at the new limit
The limit is $7,500 for 2026 — up from $5,000, the first increase since 1986, and not indexed to inflation. Payroll systems that carried over last year's election will sit at the old number. If you pay for childcare or elder care, this is the single highest-value box to check.
See what the extra $2,500 saves you →Set your Health FSA or HSA contribution
Health FSA limit is $3,400 with a $680 carryover into 2027 — anything above the carryover is forfeited, so set the election against real expected expenses. If you're on a high-deductible plan, the HSA ceilings are $4,400 self-only / $8,750 family, plus $1,000 at 55+. HSA money never expires.
Compare HSA and FSA savings →Route contributions through payroll
Payroll-deducted contributions skip FICA (7.65%) on top of income tax. Funding an HSA by bank transfer instead of payroll gives up that FICA saving — about $670 a year for a family maxing the limit. If your employer supports payroll HSA deposits, use them.
Check your plan against next year's tax picture
Three deductions created by the 2025 tax law — car loan interest, overtime premium, and the 65+ senior deduction — run through 2028 and phase out by income. If a raise or bonus pushes your MAGI near a phase-out threshold, pre-tax contributions (401(k), HSA, FSA) are the lever that keeps you under it.
Review the 2026 deductions →The two-week window problem
Open enrollment is short — often two or three weeks in late October or November — and FSA elections generally do not carry over on their own. Miss the window and you are locked into this year's (or zero) elections until a qualifying life event. Put the dates on your calendar the day your employer announces them.
※ Limits from IRS Rev. Proc. 2025-19 and the 2025 tax law. Plan rules on carryover, grace periods, and rollover vary by employer — confirm with your benefits administrator. Not tax advice.
Frequently asked questions
When is open enrollment?
Most employers run it in late October through November for coverage starting January 1. The exact window is set by your employer — often just two or three weeks — and outside of it you can only change elections after a qualifying life event such as marriage, birth, or job change.
What happens if I do nothing?
Health plan elections typically roll over, but FSA elections usually do NOT — many plans reset dependent care and health FSA contributions to zero unless you re-elect. And even where amounts do roll over, they roll over at last year's figure, which matters this year because the Dependent Care FSA limit rose from $5,000 to $7,500.
Why is the Dependent Care FSA the headline this year?
Its limit increased for the first time since 1986 — from $5,000 to $7,500. If your payroll system defaulted you to $5,000, you are leaving up to $2,500 of pre-tax room unused. For a household in the 24% federal bracket with 6% state tax, that unused room is worth roughly $940 a year.
HSA or traditional plan — how do I compare?
An HSA requires a high-deductible health plan, so the trade is lower premiums plus a triple-tax-advantaged account against higher out-of-pocket exposure. Compare your expected medical usage against the premium savings plus employer HSA seed money. The 2026 HSA ceilings are $4,400 self-only and $8,750 family, plus $1,000 catch-up at 55.
Can I have both an HSA and an FSA?
Only a limited-purpose FSA (dental and vision) can be paired with an HSA. A general-purpose health FSA makes you HSA-ineligible. A Dependent Care FSA is separate and combines fine with an HSA.