Dear colleagues:
The IRS has announced updated 2027 contribution limits for Healthcare Flexible Spending Accounts (FSAs), Transit/Parking reimbursement, and tuition assistance.
If you have already submitted your Open Enrollment elections, you have until Friday, November 20 to update your choices in CUBES.
Important Note on Healthcare FSAs: If you previously elected the maximum $3,400 Healthcare FSA contribution for 2027, your election will automatically increase to the new limit of $3,500. If you wish to opt out of this automatic increase, please email [email protected] by Friday, November 20.
Summary of 2027 Benefit Changes
1. Healthcare Flexible Spending Account (FSA)
- Contribution Limit: Increases to $3,500 (up from $3,400). You may elect between $120 and $3,500 per year, even if you waive medical coverage under Columbia's benefit plans.
- Carryover Limit: Up to $700 in unused 2027 funds can be carried over into 2028 (up from $680 of unused 2026 funds into 2027).
- Deadline: Changes must be made in CUBES by Friday, November 20.
2. Child Care Benefit
- Contribution: Eligible faculty and staff can receive up to $5,000 from Columbia to a Dependent Care FSA at no cost. The Dependent Care FSA remains at $7,500 for 2027. Review the eligibility criteria to see if you qualify.
- Deadline: Changes must be made in CUBES by Friday, November 20.
3. Tuition Assistance (Section 127)
- Tax Exclusion Limit: For 2027, the amount that can be excluded from an employee's gross income under ยง 127(a) for educational assistance is $5,400 up from $5,250 for Graduate Level Tuition Exemption.
4. Transit & Parking Reimbursement Program (T/PRP)
- Contribution Limit: Increases to $350/month for Transit and $350/month for Parking (up from $340/month).
- Timeline: You can enroll or adjust your transit and parking contributions at any time during the year.
How to Make Changes:
- Log in to the Columbia University Benefits Enrollment System (CUBES).
- Select "Make Changes" to update your FSA or Transit elections.
Questions?
If you have questions about your benefits, contact the Columbia Benefits Service Center at 212-851-7000, or email [email protected].
