On Oct. 22, 2024, the IRS announced that the limit for employee pre-tax contributions to health FSAs will rise to $3,300 for 2025, reflecting a $100 increase from 2024. Employers must ensure compliance and communicate limits to employees. Click here for article.
The 2025 health FSA limit for employee pre-tax contributions is set at $3,300, up from $3,200 in 2024.
Employers can set lower contribution limits but must include the limit in plan documents and communicate it during enrollment.
Each employee can contribute up to $3,300 individually, regardless of family members' participation in their own FSAs.
The maximum carryover amount for unused FSA funds increases to $660 for 2025, though employers may set lower limits.
Comments