A health care flexible spending account (FSA) is a tax-advantaged account that allows employees to set aside pre-tax dollars to pay for qualified medical expenses. The funds in an FSA can be used to pay for a variety of expenses, including doctor’s visits, prescription drugs, and dental care. The health care FSA limit for 2025 is $3,050. This means that employees can contribute up to $3,050 to their FSA in 2025.
Health care FSAs offer a number of benefits. First, they can help employees save money on their medical expenses. By contributing pre-tax dollars to an FSA, employees can reduce their taxable income, which can save them money on their taxes. Second, health care FSAs can help employees budget for their medical expenses. By setting aside a specific amount of money each year for medical expenses, employees can avoid unexpected costs. Third, health care FSAs can help employees access affordable health care. By using the funds in their FSA to pay for medical expenses, employees can reduce the amount of money they have to pay out-of-pocket.
