Tax-Advantaged Plans Updates (2026) Webinar (10.07.25)-2026 Updates on Tax-Advantaged Plans HCA - Webinar

2026 Updates on Tax-Advantaged Plans HCA - Webinar - PowerPoint (100725)

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The document outlines 2026 updates to Washington State HCA SEBB tax-advantaged benefits, focusing on consumer-directed health plans (CDHPs), Health Savings Accounts (HSAs), Flexible Spending Arrangements (FSAs), and the Dependent Care Assistance Program (DCAP).<br /><br />For the UMP High Deductible medical plan paired with an HSA, IRS inflation adjustments (Revenue Procedure 2025-19) increase the minimum annual deductible for 2026 to $1,700 (individual) and $3,400 (family), up from $1,650 and $3,300 in 2025. The IRS also raises HSA annual maximum contribution limits for 2026 to $4,400 (individual) and $8,750 (family), up from $4,300 and $8,550. In addition, the State of Washington will contribute $375 for one-person enrollment and $750 for more-than-one-person enrollment, paid in equal deposits over the calendar year.<br /><br />The presentation recaps that FSAs cover eligible out-of-pocket medical expenses, Limited Purpose FSAs are restricted to dental and vision (intended for members in high-deductible plans), and DCAP supports eligible child and elder care expenses through pre-tax payroll deductions.<br /><br />A key administrative change affects FSA maximum elections: if the IRS announces an increased 2026 FSA/Limited Purpose FSA maximum before the last day of open enrollment, SEBB will adopt the higher maximum for 2026 (moving from $3,200 in 2025 to at least $3,300 in 2026). Enrollment materials will include disclaimers, and a checkbox will allow those who elected the prior maximum to automatically increase to the new limit.<br /><br />For carryover, up to $660 of unused 2025 FSA or Limited Purpose FSA funds may roll into January 2026. Amounts over $660 are forfeited; amounts under $120 are forfeited unless the participant enrolls in an FSA for 2026.<br /><br />DCAP maximums permanently increase in 2026 to $7,500 (single/joint) and $3,750 (married filing separately), reflecting the first permanent congressional increase since the program began.<br /><br />Finally, certain eligible SEBB employees may receive a new $200 employer FSA contribution, and 2025 claims must be incurred by Dec. 31, 2025 and submitted by March 31, 2026.

Keywords

Washington State HCA SEBB 2026 updates

consumer-directed health plan (CDHP)

UMP High Deductible health plan

Health Savings Account (HSA) contribution limits 2026

IRS Revenue Procedure 2025-19 inflation adjustments

Washington State HSA employer contribution $375 $750

Flexible Spending Arrangement (FSA) maximum election 2026

Limited Purpose FSA dental and vision

FSA carryover $660 rule and forfeiture

Dependent Care Assistance Program (DCAP) maximum $7,500 2026