The FSA 2025 limit refers to the maximum amount of money that can be contributed to a Flexible Spending Account (FSA) in a given year. This limit is set by the Internal Revenue Service (IRS) and is adjusted annually for inflation. For 2025, the FSA limit is $3,050 for health FSAs and $3,050 for dependent care FSAs.
FSAs offer a number of benefits, including tax savings and the ability to pay for qualified medical and dependent care expenses with pre-tax dollars. However, it is important to note that FSA contributions are made on a pre-tax basis, meaning that they are deducted from your paycheck before taxes are calculated. This can result in a lower take-home pay. Additionally, FSA funds must be used by the end of the plan year or they will be forfeited.
