March 2026

As we continue in 2026, it’s essential for employers to stay informed about the updated cost-of-living adjustments (COLAs) that impact employee benefits. Recent IRS updates affect key programs such as flexible spending accounts (FSAs), Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), transportation fringe benefits, adoption assistance, and health savings accounts (HSAs).

Understanding and implementing these changes can help optimize tax advantages, maintain compliance, and support employees in managing their healthcare and other related costs. This Advisor highlights the 2026 limits for these key benefits and provides actionable steps employers should take to ensure proper integration of these changes into their benefits packages.

Employer Action Items

  • Review and update benefits materials.
    Ensure all documents, including cafeteria plans, reflect the 2026 limits for FSAs, transportation fringe benefits, QSEHRAs, and other programs.
  • Ensure compliance.
    Evaluate plan affordability and ACA compliance in light of the updated thresholds.
  • Coordinate with payroll and benefits providers.
    Collaborate with external payroll and benefits vendors to update payroll systems, ensuring seamless compliance with the new caps on contributions and reimbursements.
  • Communicate changes during open enrollment.
    Use the upcoming open enrollment period to educate employees on the new 2026 limits, highlighting how these changes may impact their benefits selections and tax savings for the year.
  • Inform HR teams.
    Ensure that HR staff is aware of the new limits and prepared to answer employee questions and properly administer benefits under the new guidelines.

Get the Complete Guide Here

The post IRS Releases 2026 Benefit Plan Limits | Compliance Advisor appeared first on 1706 Advisors.

1706 Advisors

BLOG AUTHORS

Stacy Kahan, CLU®, RFC®

Founder

Stacy is the Founder of 1706 Advisors and has led its growth and expansion for over thirty years.

She learned the business from the inside out from her father and went on to start her own…

BLOG AUTHORS

Stacy Kahan, CLU®, RFC®

Founder

Stacy is the Founder of 1706 Advisors and has led its growth and expansion for over thirty years.

She learned the business from the inside out from her father and went on to start her own firm, Lang Financial Group, in 1994. She grew Lang Financial Group (LFG) from a start-up to an established enterprise that has helped thousands of people and businesses protect what they care about. In 2019, she expanded the business even further by bringing in strategic human resource consulting. Stacy is known for her visionary leadership, passion for the business, and ability to solve any problem. She graduated from the Wisconsin School of Business with a degree in Risk & Insurance and Finance, and is a Chartered Life Underwriter at the Masters level. Stacy’s daughters are now leading the business into the future under its new moniker, 1706 Advisors.

Alana Kahan, RFC®

President

Alana is 1706 Advisors’ President, responsible for executing the strategic mission of the firm. She’s known for combining out-of-the-box thinking with operational expertise, creating the big picture vision of the business and then executing ideas to completion.

She leads all new business development, oversees client onboarding to ensure seamless interactions, and manages the firm’s team of experts, employees, and strategic partners. Alana takes a long-term view of client relationships, tailoring practical strategies for them as their needs change and grow, and empowering them with the knowledge to make informed financial decisions today and in the future.

Cara Kahan, RFC®

Chief Executive Officer

As Chief Executive Officer of 1706 Advisors, Cara is leading the third-generation business forward with a commitment to high-level, data-informed client experience.

She works closely with CEOs, CFOs, COOs, and HR directors to ensure their employee benefits and individual insurance programs have the right balance for their goals, work culture, and budget. Cara learned the business from her mother, Stacy Kahan, founder of Lang Financial Group, who learned the business from her father. Prior to her CEO role, Cara worked outside the firm as a banking Vice President, so she has a deep understanding of the business from the client side. She’s known for her commitment to protecting her clients’ bottom line while providing personalized client service. Cara earned a Bachelor of Science degree from the University of Colorado at Boulder – Leeds School of Business, with a focus in Marketing and Entrepreneurship.

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