The term “2025 flexible spending account limits” refers to the maximum amount of money that individuals can contribute to their flexible spending accounts (FSAs) in 2025. FSAs are tax-advantaged accounts that allow employees to set aside pre-tax dollars to pay for qualified medical expenses. The limit for 2025 is set by the Internal Revenue Service (IRS) and is adjusted annually.
Importance of 2025 Flexible Spending Account Limits:
Flexible spending account (FSA) limits for 2025 have been announced by the Internal Revenue Service (IRS). The annual contribution limit for health FSAs will increase to $3,050, while the limit for dependent care FSAs will remain at $5,000. These limits apply to both employer-sponsored and individually purchased FSAs.
FSAs are tax-advantaged accounts that allow employees to set aside pre-tax dollars to pay for qualified medical expenses or dependent care costs. This can result in significant savings on taxes. For example, an employee who contributes $3,050 to a health FSA in 2025 will save $610 in federal income taxes (assuming a 20% tax bracket).
