Iowa Schools

2027 benefit limits for Iowa school districts, and which ones apply to a July 1 plan year

The IRS sets some limits by calendar year and others by plan year. For a district that renews on July 1, that decides which number goes in the enrollment guide.

3E Partners benefits desk Updated 4 min read
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The short version

  • 2027 HSA limits: $4,500 self-only, $9,000 family. HSA limits follow the calendar year, whatever your plan year is.
  • A plan year that started July 1, 2026 keeps the $3,400 health FSA limit and the 9.96% ACA affordability percentage through June 30, 2027.
  • IPERS regular-member rates are unchanged: 6.29% employee, 9.44% district.
  • Still not released as of October 13, 2026: the 2027 health FSA limit, 403(b) and 457(b) limits, and Social Security wage base.

Most limit charts assume a January 1 plan year. A district that renews July 1 lives under two sets of IRS numbers in every plan year, so the first question is which limits switch in January and which hold until renewal.

Which number a July 1, 2026 plan year uses

Plan year July 1, 2026 through June 30, 2027
LimitFollowsWhat applies
HSA contribution limitCalendar year2026 limit through December, 2027 limit from January 1
HDHP minimum deductiblePlan year2026 minimum until the July 1, 2027 renewal
Health FSA limitPlan year$3,400 for the whole plan year
Dependent care FSAEmployee's tax year$7,500 per calendar year
ACA affordabilityPlan year9.96% for the whole plan year
403(b) and 457(b) deferralsCalendar year2026 limit through December, 2027 limit from January 1
IPERS ratesState fiscal yearSame July 1 through June 30 window as the plan year

HSA and high-deductible plan limits

Item20262027
HSA contribution, self-only coverage$4,400$4,500
HSA contribution, family coverage$8,750$9,000
Catch-up, age 55 or older$1,000$1,000
HDHP minimum deductible, self-only / family$1,700 / $3,400$1,750 / $3,500
HDHP out-of-pocket maximum, self-only / family$8,500 / $17,000$8,700 / $17,400

Sources: Revenue Procedures 2026-24 and 2025-19.1,2 The limit counts the district's contribution too.3 If the district puts in $1,000, a family-coverage employee can add $8,000 for 2027.

The deductible minimum is different. A fiscal-year plan can pick up the new minimum at renewal instead of January 1.4 A $1,700 self-only deductible that renewed July 1, 2026 stays HSA-qualified until the July 1, 2027 renewal, when it has to reach $1,750 (family $3,500).

Health FSA and dependent care FSA

The health FSA limit is $3,400 for plan years beginning in 2026, with a $680 maximum carryover.5 A July 1 plan year uses those figures through June 30, 2027. The 2027 limit had not been published as of October 13. Last year's came out October 9.

The dependent care FSA limit rose from $5,000 to $7,500 per household for 2026 ($3,750 married filing separately).6 Check that the plan document was amended. A plan still written at $5,000 holds employees to $5,000.

ACA affordability and penalty amounts

Affordability follows the plan year. Penalty amounts follow the calendar year.
Item20262027
Affordability percentage, for plan years beginning in that year9.96%10.22%
Penalty for not offering coverage, per full-time employee$3,340$3,780
Penalty for unaffordable coverage, per affected employee$5,010$5,670

A July 1 district tests affordability against 9.96% until June 30, 2027.7,8 The penalty amounts switch on January 1 regardless of plan year, and are assessed month by month.9,10,11

The easiest safe harbor uses the federal poverty line for one person.11 For Iowa in 2026 that is $15,960.12 9.96% of $15,960, divided by 12, is $132.46 a month, rounded down so the district stays under the line (our arithmetic; the IRS doesn't publish it). If no full-time employee pays more than that for single coverage on the lowest-cost plan, the district passes for everyone without looking at wages.

403(b) and 457(b) deferrals

Item20262027
Employee deferral limit, 403(b)$24,500Not yet released
Employee deferral limit, 457(b)$24,500Not yet released
Catch-up, age 50 or older$8,000Not yet released
Catch-up, ages 60 through 63$11,250Not yet released

2026 figures are from IRS Notice 2025-67.13 The 403(b) and 457(b) limits are separate, so an employee under 50 can defer $24,500 to each.14 Staff close to retirement ask about this.

New for 2026: catch-ups from anyone whose 2025 Social Security wages from the district topped $150,000 must go in as Roth.13 Plans may follow a reasonable, good-faith reading of the rule until the final regulations take effect.15 Ask your administrator what payroll needs to send.

IPERS and Social Security

IPERS regular-member rates for the year that began July 1, 2026: 6.29% employee, 9.44% district, 15.73% total.16 The 2026 Social Security wage base is $184,500.17 The 2027 base is normally announced in mid-October.

Still pending for 2027

  • Health FSA limit and carryover. First matters to a July 1 district at the July 1, 2027 renewal.
  • 403(b) and 457(b) limits. Expected by mid-November. They take effect January 1, mid-plan-year.
  • Social Security wage base. Expected mid-October.
  • 2027 poverty guidelines. Published by HHS in January. They set the safe-harbor amount for a July 1, 2027 plan year.

We update this page as each figure comes out.

Sources

Each figure and rule above was checked against the source listed, most recently on October 13, 2026.

  1. IRS, Revenue Procedure 2026-24 (2027 HSA and HDHP amounts).
  2. IRS, Revenue Procedure 2025-19 (2026 HSA and HDHP amounts).
  3. IRS, Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.
  4. IRS, Notice 2004-50, Q&A-86, in Internal Revenue Bulletin 2004-33.
  5. IRS, Revenue Procedure 2025-32, section .15 (2026 health FSA limit and carryover).
  6. IRS, Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits.
  7. IRS, Revenue Procedure 2025-25 (9.96% for plan years beginning in 2026).
  8. IRS, Revenue Procedure 2026-26 (10.22% for plan years beginning in 2027).
  9. IRS, Revenue Procedure 2025-26 (2026 section 4980H amounts).
  10. IRS, Revenue Procedure 2026-22 (2027 section 4980H amounts).
  11. IRS, Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act.
  12. U.S. Department of Health and Human Services, Annual Update of the HHS Poverty Guidelines, January 15, 2026.
  13. IRS, Notice 2025-67 (2026 retirement plan limits).
  14. IRS, How much salary can you defer if you're eligible for more than one retirement plan?.
  15. IRS, Treasury, IRS issue final regulations on new Roth catch-up rule, other SECURE 2.0 Act provisions.
  16. IPERS, Employer Bulletin 2025-5 (contribution rates effective July 1, 2026).
  17. Social Security Administration, Contribution and Benefit Base.

This article is general information for school employers. It is not tax or legal advice, and it does not replace your plan documents or your district's counsel. Limits and rules change; confirm the current figure before you rely on it.