The term “2025 fsa limits” refers to the contribution limits set by the Internal Revenue Service (IRS) for Flexible Spending Accounts (FSAs) in the year 2025. These limits determine the maximum amount of money that individuals can contribute to their FSAs on a pre-tax basis to cover qualified medical and dependent care expenses.
FSA limits are important because they impact the amount of tax savings that individuals can achieve through their FSA contributions. By contributing to an FSA, individuals can reduce their taxable income, potentially resulting in lower overall tax liability. Additionally, FSA contributions are made on a pre-tax basis, meaning that they are deducted from an individual’s paycheck before taxes are calculated, further increasing tax savings.
