The FSA 2025 restrict refers back to the most sum of money that may be contributed to a Versatile Spending Account (FSA) in a given 12 months. This restrict is ready 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 supply an a variety of benefits, together with tax financial savings and the flexibility to pay for certified medical and dependent care bills with pre-tax {dollars}. Nevertheless, you will need to observe that FSA contributions are made on a pre-tax foundation, which 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 top of the plan 12 months or they are going to be forfeited.