Limited-purpose FSAs, also known as health FSAs, are employer-sponsored health-savings accounts that allow employees to save pre-tax dollars to use on qualified medical expenses.
In 2025, the contribution limit for limited-purpose FSAs is set at $3,050. This amount is subject to change annually, so it is important to check with your employer or refer to the IRS website for the most up-to-date information.
Limited-purpose FSAs offer a number of benefits, including:
