IRS Announces 2025 FSA Limits plblackwell@me…
The Internal Revenue Service recently released Revenue Procedure 2024-40 announcing certain cost-of-living adjustments for calendar year 2025. The dollar limit on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) is increasing to $3,300 (up from $3,200). If a cafeteria plan permits health FSA carryovers, the maximum amount that can be carried over to the 2026 plan is $660 (up from $640).
Health Flexible Spending Account Limits by Tax Year | ||||
2025 | 2024 | 2023 | 2022 | 2021 |
$3,300 | $3,200 | $3,050 | $2,850 | $2,750 |
For additional guidance on FSAs, please review IRS Publication 969.
If you have any questions, please contact your MedCost Account Manager.