2025 FSA Contribution Limits Announced
The IRS announced the new limits on October 22, 2024.
Highlights of changes coming in 2025:
- FSA Contributions: Contributions to a healthcare flexible spending account have increased $100 to $3,300 – up from $3,200 in 2024.
- FSA Carryover Amount: If the employer allows for carry-over, FSA participants can now carry over $660 – up $20 from $640 in 2024.
- Transit & Parking Benefits: The monthly contribution limit on parking and transit benefits will increase to $325 – up from $315 in 2024.
- Adoption Assistance Program: The maximum exclusion for qualified adoption expenses under the adoption assistance program is now $17,280 – up from $16,810 in 2024.
| Taxable Years Beginning in 2025 | Taxable Years Beginning in 2024 | |
| Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement (Section 3.16 of Rev. Proc. 2021-45) | $3,300 | $3,200 |
| Maximum carryover amount of unused FSA amounts (Section 3.16 of Rev. Proc.2021-45 | $660 | $640 |
| Monthly limit on fringe benefit exclusion for transit and parking (Section 3.17 of Rev. Proc. 2021-45) | $325 | $315 |
| Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program (Section 3.19 of Rev. Proc. 2021-45) | $17,280 | $16,810 |
| Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) (Section 3.62 of Rev. Proc. 2022-38) | $6,350 ($12,800 for family coverage) |
$6,150 ($12,450 for family coverage) |
The above chart does not include all the provisions under the cost-of-living adjustment.
For a full break down of the changes made by the IRS for benefit account contributions, see the full details here.
HSA Limits were previously announced earlier in the year. Find them HERE.
