The FSA restrict for 2025 is the utmost sum of money that a person can contribute to a Versatile Spending Account (FSA) in that 12 months. FSAs are tax-advantaged accounts that enable staff 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 provide an a variety of benefits, together with lowering your taxable earnings, saving cash on medical bills, and offering a handy approach to pay for eligible bills. Nonetheless, there are additionally some drawbacks to FSAs, comparable to the truth that you have to use the cash in your FSA by the top of the 12 months or you’ll lose it, and the truth that FSAs are usually not obtainable to everybody.