The FSA limit for 2025 is the maximum amount of money that an individual can contribute to a Flexible Spending Account (FSA) in that year. FSAs are tax-advantaged accounts that allow employees to set aside money on a pre-tax basis to pay for qualified medical expenses and other eligible expenses. The FSA limit for 2025 has not yet been set by the Internal Revenue Service (IRS), but it is expected to be around $3,050, the same as the limit for 2023 and 2024.
FSAs offer a number of benefits, including reducing your taxable income, saving money on medical expenses, and providing a convenient way to pay for eligible expenses. However, there are also some drawbacks to FSAs, such as the fact that you must use the money in your FSA by the end of the year or you will lose it, and the fact that FSAs are not available to everyone.