The FSA restrict for 2025 is the utmost amount of cash that a person can contribute to a Versatile Spending Account (FSA) in that 12 months. FSAs are tax-advantaged accounts that enable workers to put aside cash on a pre-tax foundation to pay for certified medical bills and different eligible bills. The FSA restrict for 2025 has not but been set by the Inner Income Service (IRS), however it’s anticipated to be round $3,050, the identical because the restrict for 2023 and 2024.
FSAs supply a number of advantages, together with lowering your taxable revenue, saving cash on medical bills, and offering a handy option to pay for eligible bills. Nevertheless, there are additionally some drawbacks to FSAs, similar to the truth that you will need to use the cash in your FSA by the tip of the 12 months or you’ll lose it, and the truth that FSAs usually are not out there to everybody.