by admin | Jan 8, 2026 | Blog
The IRS has announced new mileage rates for 2026. If you use your personal car for work, medical, moving, or charitable The IRS has announced new mileage rates for 2026. If you use your personal car for work, medical appointments, moving, or charitable activities, these rates help you calculate deductions or reimbursements without tracking every expense.
Updated Rates for 2026
- Business: 72.5¢ per mile (up from 70¢ in 2025)
- Medical & Moving: 20.5¢ per mile (down from 21¢)
- Charitable: 14¢ per mile (same as last year)
Business mileage includes both fixed and variable costs like depreciation and fuel. Medical and moving only cover variable costs such as gas and oil.
Vehicle Value Limit
If your employer provides a car for personal use, the IRS sets a maximum value for certain rules. In 2026, that limit is $61,700. This also applies to reimbursement plans like FAVR, which base payments on local driving costs.
Why It Matters:
Using the correct mileage rate ensures your deductions or reimbursements are accurate and compliant. Keep these numbers in mind for your 2026 reporting.
by admin | Dec 11, 2025 | Blog
Big news! The IRS just explained how the One Big Beautiful Bill Act (OBBBA) changes Health Savings Account (HSA) rules. Here’s what it means in plain language:
✅ 1. Telehealth Gets the Green Light
- If your high-deductible health plan (HDHP) covered telehealth before July 4, 2025, you can still put money into your HSA for the whole year.
- Only services on the official Medicare telehealth list count. In-person visits, equipment, or prescriptions don’t qualify unless listed.
✅ 2. Bronze & Catastrophic Plans Count as HDHPs
- Starting in 2026, bronze and catastrophic plans from ACA exchanges will qualify as HDHPs—even if they don’t meet the usual deductible rules.
- Employers can use ICHRAs to help employees buy these plans.
✅ 3. Direct Primary Care (DPCSA) Rules
- Monthly fee limits: $150 per person or $300 per family.
- Fees must be fixed and regular—no surprise bills for members.
- HDHPs can’t count these fees toward deductibles or offer extra primary care before the deductible.
✅ 4. Using Your HSA for DPCSA Fees
- You can use HSA money for DPCSA fees if they only cover primary care and follow IRS rules.
- If fees go over the monthly limit, you can’t add money to your HSA during that time.
- Employer-paid fees can’t be reimbursed from your HSA.
What Should You Do?
- Check your telehealth coverage.
- Update plan info for bronze/catastrophic HDHP status.
- Make sure DPCSA agreements follow the new limits.
- Share these changes with employees.
Bottom Line: These updates make HSAs more flexible for telehealth, ACA plans, and direct primary care—but you need to follow the IRS rules to stay eligible.
Source: Thomson Reuters
by admin | Oct 14, 2025 | Blog
The IRS announced the 2026 contribution limits for all Flexible Spending Account (FSA) plans. Below is an overview of the limit increases across all the types of FSAs.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on a pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $3,300 to $3,400 for 2026. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. Limited Purpose FSA limits will also increase from $3,300 to $3,400 for 2026.
Carryover Limit
The FSA Carryover limit provides employers the option to transfer a maximum amount of remaining FSA balances at a plan year’s end to carryover for use during the next plan year. This is available with Healthcare and Limited Purpose FSAs only. The carryover limits for this account will increase from $660 to $680 for 2026.
Dependent Care Flexible Spending Account
The Dependent Care FSA allows employees to set aside pre-tax dollars to pay for eligible dependent care expenses,
such as daycare, preschool, and before- or after-school programs. For 2026, the contribution limit will increase from
$5,000 to $7,500 for single taxpayers or married couples filing jointly. For married individuals filing separately, the limit
will increase from $2,500 to $3,750. This change was enacted through legislation passed in July 2025 and is not subject
to annual inflation adjustments.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit, and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $325 to $340 for 2026.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $17,280 to $17,670 for 2026.
For more information about this major change, read our latest handout.
