The FSA 2025 restrict refers back to the most amount of cash that may be contributed to a Versatile Spending Account (FSA) in a given yr. This restrict is about by the Inside Income Service (IRS) and is adjusted yearly for inflation. For 2025, the FSA restrict is $3,050 for well being FSAs and $3,050 for dependent care FSAs.
FSAs provide an a variety of benefits, together with tax financial savings and the power to pay for certified medical and dependent care bills with pre-tax {dollars}. Nevertheless, you will need to word that FSA contributions are made on a pre-tax foundation, that means that they’re deducted out of your paycheck earlier than taxes are calculated. This may end up in a decrease take-home pay. Moreover, FSA funds should be utilized by the tip of the plan yr or they are going to be forfeited.
