NRECA Employee Benefits Weekly

2026 Tax-Advantaged Account Documents Available

Posted on Posted in Tax-advantaged Accounts

If your cooperative plans to add a new 125 Plan or health reimbursement arrangement (HRA) or make changes to its current plan(s) in 2026, the sample plan documents and forms your co-op will need are now available on the Employee Benefits website. 

Be sure to complete the appropriate plan-related documents and return them to Cooperative Benefit Administrators, Inc. (CBA) at cba.fsa.hra@nreca.coop by Tuesday, September 30. See these fliers—Making Changes to Your 125 Plan or Making Changes to Your HRA Plan—for details on what’s required for plan adoptions and other changes.

You’ll find the documents you need here:

Also, if your co-op will sponsor a 125 Plan in 2026, remember to submit a payroll calendar by September 30 for each subgroup administered, regardless of whether you are making changes to your plan. Payroll dates must all occur within the 2026 calendar year.

New maximums and limits
Updates for 2026 include (these amounts will automatically be updated in your plan):

  • Participant contribution maximum for health flexible spending accounts (health FSAs) and limited-use health FSAs: $3,300.
  • Carryover amount, if your plan has the carryover option: $660.

Additionally, the dependent care assistance program (DCAP) contribution will increase from $5,000 to $7,500 as a result of recently passed federal legislation.

Note: Co-ops sponsoring a DCAP must comply with annual nondiscrimination testing requirements (per the Internal Revenue Code). With the increased contribution limit, there is a greater risk of testing failure among co-ops that have a larger percentage of highly compensated employees overall and among those participating in the DCAP. Therefore, be sure to discuss the potential nondiscrimination implications for your DCAP with your co-op’s legal counsel.

You should amend your plan document (for your records) and the SPD (for your employees) with the new contribution maximum and limit amounts according to the plan document and SPD templates on the Employee Benefits website.

Annual enrollment
You can enroll your employees in 2026 tax-advantaged plans from November 1–30. Look for more information about the open enrollment process in October.

For any questions about the 125 Plan or HRA plans, contact CBA at 866.673.2299, option 1 or email cba.fsa.hra@nreca.coop.

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