Open Enrollment 2027: Your HSA, FSA & LSA Game Plan

This is the highest-paying 15 minutes of your year, and most people click through it on autopilot. Open enrollment is the once-a-year window when you decide how much of your paycheck skips taxes on its way into your benefit accounts.

Here's the fast answer. During 2027 open enrollment — the elections you're making this fall — you choose how much pre-tax money to route into three big buckets: a Health Savings Account (HSA), a Flexible Spending Account (FSA), and, if you pay for childcare, a Dependent Care FSA. The IRS has already locked in the 2027 HSA caps at $4,500 (self-only) or $9,000 (family). The Dependent Care FSA holds at $7,500 — a fixed dollar figure under 2025's tax law, not one the IRS adjusts for inflation, so it doesn't move year to year on its own. The one number still outstanding is the 2027 health FSA limit, which the IRS typically announces in October. We'll update this page the moment it's confirmed. Every dollar you elect is a dollar the IRS never taxes — this guide tells you exactly how much to put where.

The 30-second open enrollment cheat sheet

Short on time? Here's the whole playbook at a glance.

If you have a high-deductible health plan: max the HSA

• Contribute here first. The HSA is the only account that's triple tax-free: money goes in pre-tax, grows tax-free, and comes out tax-free for medical costs, which is why it doubles as a stealth retirement account.
• 2027 limit: $4,500 self-only or $9,000 family, plus a $1,000 catch-up if you're 55 or older.
• It's yours for life. No use-it-or-lose-it. Unspent money rolls over year after year and can be invested.

If you have a traditional health plan: fund the FSA

• Your move if you're not HSA-eligible. You can't fund a standard health FSA and an HSA in the same year.
• 2027 limit: not yet released by the IRS. The most recently confirmed number is $3,400 for 2026 — expect the official 2027 figure in October, and we'll update this page as soon as it lands.
• Use-it-or-lose-it. Plans that allow carryover can pass along up to 20% of your FSA limit into the next year (that was $680 for 2026 funds moving into 2027). The 2028 carryover cap will follow once the 2027 base limit is set. Elect only what you'll realistically spend.

If you pay for childcare: grab the dependent care FSA

• Still $7,500. The dependent care FSA cap jumped from $5,000 to $7,500 for 2026 under 2025's tax law. It's a fixed dollar figure with no inflation adjustment, so it holds at $7,500 for 2027 too — no fresh IRS announcement needed.
• Covers daycare, preschool, after-school care, and day camp for kids under 13.
• Separate from your medical FSA. You can fund both in the same year.

TL;DR: On an HDHP, max the 2027 HSA; hold off finalizing your FSA election until the IRS confirms the 2027 number; and if you have kids in care, the dependent care FSA still shelters up to $7,500.

What are the 2027 contribution limits — and what's still pending?

The elections you make this fall take effect for the 2027 plan year. The IRS has already confirmed the 2027 HSA and HDHP numbers; the health FSA figure is the one piece still outstanding. Here's the full picture, with last year's numbers alongside for comparison.

HSA (Health Savings Account)

• 2026: $4,400 self-only, $8,750 family, plus a $1,000 catch-up at age 55+.
• 2027: $4,500 self-only, $9,000 family, catch-up stays $1,000 — confirmed by the IRS in May 2026 (Rev. Proc. 2026-24).
• The catch: your plan has to be a true HDHP. For 2026 that means a deductible of at least $1,700 self-only or $3,400 family; for 2027 the minimum rises to $1,750 self-only or $3,500 family, with an out-of-pocket max of $8,700 self-only or $17,400 family.

Health FSA

• 2026: $3,400 in salary reductions, with up to $680 carrying into 2027 if your plan allows it.
• 2027: not yet announced. The IRS typically releases the coming year's health FSA limit in a Revenue Procedure each October or November — the 2026 number was announced October 9, 2025. We're tracking this and will update the figure the moment it's official.
• Employer extra: your employer can add up to $500 on top without eating into your limit.

Dependent Care FSA

• 2026: $7,500 per household, or $3,750 if married filing separately, up from $5,000.
• 2027: stays at $7,500 (or $3,750 if married filing separately). This is a fixed dollar cap set by 2025's tax law rather than one adjusted annually for inflation, so it doesn't require a fresh IRS announcement to carry forward.
• One catch: your employer has to adopt the higher limit in their plan documents. If they haven't, you may still be capped at $5,000, so check your enrollment portal.

TL;DR: HSA caps are $4,400/$8,750 for 2026 and a confirmed $4,500/$9,000 for 2027; the 2027 health FSA number is still pending IRS confirmation; the dependent care FSA holds at $7,500 for both years if your employer opted in.

HSA or FSA: which should you actually pick?

Most of the time your health plan makes this choice for you. Enroll in a high-deductible plan and you're eligible for an HSA, which is almost always the better deal because the money is yours for life and can be invested. Pick a traditional lower-deductible plan and the health FSA becomes your pre-tax vehicle. So the real question isn't which account. It's how much.

A simple rule: fund the HSA up to whatever you can spare, since it never expires, and fund an FSA only up to what you know you'll spend this year. If you want the full side-by-side, our guide to the difference between an HSA, FSA, and LSA breaks down ownership, rollover, and taxes.

One thing the size of your election can't fix on its own: the money only pays off if you actually spend it on eligible things. That's the gap Caeli closes. As you shop on Amazon, Target, or CVS, it flags what your HSA or FSA covers before you pay, and at checkout it puts eligible items on your benefits card and everything else on a backup card, so your card clears more often at the register.

TL;DR: Your health plan usually decides HSA vs FSA for you; the decision that actually matters is how much to contribute, and the HSA wins when you can leave the money to grow.

The open enrollment mistakes that cost you the most

• Over-funding an FSA you won't spend. Roughly half of FSA holders forfeited money back to their employer in 2022, an average of $441 each. Elect what you'll truly use, then spend it down before the deadline. Our use-it-or-lose-it survival manual has the year-end game plan.
• Skipping the dependent care FSA. With the cap at $7,500, a household in the 24% bracket saves roughly $1,800 in federal income tax alone. We run the full math in our dependent care FSA guide.
• Leaving your LSA on the table. Many employers now offer a Lifestyle Spending Account for gym memberships, wellness gear, and sometimes home-office equipment. It's separate from your health accounts and often goes unclaimed. Here's what an LSA is and how to use it. Caeli reads your specific plan's LSA terms and surfaces what's actually covered, so you're not guessing whether your yoga membership counts.
• Electing, then forgetting. The money does nothing until you use it. Set a reminder to actually spend from the account you funded.

TL;DR: The costliest moves are over-funding an FSA you won't spend, skipping the $7,500 dependent care FSA, and letting your LSA dollars expire.

Caeli Pro-Tip: Electing the money is step one. Actually capturing it is step two, and it's where most of the savings leak out. Install the free Caeli browser extension before your new elections kick in. It shows an instant eligibility badge as you shop, splits your checkout so eligible items land on your HSA or FSA card, and pairs each receipt with its paperwork so you're covered if your plan administrator asks for proof. You did the work of setting the money aside. Let Caeli make sure it gets used.

Frequently asked questions

When is open enrollment for 2027?

Most employer open enrollment periods run two to four weeks in the fall of 2026, usually between October and early December, for coverage that starts January 1, 2027. Your exact window is set by your employer, so check your HR portal. If you buy your own coverage through the ACA Marketplace, that open enrollment typically opens November 1, 2026.

How much can I contribute to an HSA in 2027?

$4,500 with self-only HDHP coverage and $9,000 for family coverage, plus an extra $1,000 if you're 55 or older — confirmed by the IRS in May 2026 (Rev. Proc. 2026-24). That's up from $4,400 and $8,750 in 2026.

What is the 2027 FSA contribution limit?

Not yet released. The IRS typically announces the coming year's health FSA limit each October or November — the 2026 number ($3,400) was announced in October 2025. Until the 2027 figure is confirmed, the most recent known limit is $3,400, with up to $680 of unused 2026 funds eligible to carry into 2027 if your plan allows it.

Did the dependent care FSA limit really increase to $7,500, and does it stay there for 2027?

Yes, and it holds at $7,500 for 2027 too (or $3,750 if married filing separately). Unlike the health FSA, this cap is a fixed dollar figure under 2025's tax law rather than one the IRS adjusts for inflation each year, so it won't change again until Congress acts. Your employer still has to adopt the higher limit in their plan, so confirm it in your enrollment materials.

Can I have both an HSA and an FSA at the same time?

Not a general-purpose health FSA. If you contribute to an HSA, you can only pair it with a limited-purpose FSA (dental and vision) or a dependent care FSA. Enrolling in a standard health FSA makes you ineligible to contribute to an HSA that year.

What happens to my FSA money if I don't use it?

Health FSAs are use-it-or-lose-it. Depending on your plan you may get a carryover — $680 was the cap on 2026 funds carrying into 2027, and the next carryover cap will follow once the IRS sets the 2027 base FSA limit — or a grace period of up to two and a half extra months, but anything past that is forfeited to your employer. If you're changing jobs mid-year, here's what happens to your FSA when you leave.

The bottom line

Open enrollment isn't paperwork. It's the one moment a year you get to lower your own tax bill and pre-fund things you were going to buy anyway, from prescriptions to daycare to a new pair of glasses. Max the HSA if you can, right-size the FSA, claim the dependent care and lifestyle accounts you're entitled to, and then, above all, use the money. Make your 2027 elections this fall, then let Caeli make sure not a dollar of it goes to waste.