Employee Benefits
FSA Contribution Limits for 2025
Flexible spending accounts (FSAs) provide a tax-advantaged way to save on eligible medical expenses. An employer may offer these accounts as part of your employee benefits package. They work by setting aside pre-tax money from your paycheck to help cover healthcare and dependent care costs.
In addition to offering you tax savings, an FSA can help you more effectively manage your medical expenses. But to maximize these benefits, you’ll need to understand the contribution limits for an FSA.
What are the 2025 FSA limits?
The Internal Revenue Service (IRS) increased FSA contribution limits and rollover amounts for 2025. Here are the new 2025 limits compared to 2024:1,2
| 2025 | 2024 | |
| Health FSA: Maximum contribution limit | $3,300 | $3,200 |
| Health FSA: Maximum rollover limit | $660 (for applicable plans) | $640 |
How do FSA contribution and rollover limits work?
An FSA contribution limit is the maximum amount you can set aside annually from your paycheck to fund your FSA. A rollover limit is a cap on any unused FSA funds from the previous plan year that can carry over into the next year.
However, not all employers allow you to roll over your FSA funds — many plans are “use-it-or-lose-it.” If your employer does allow a rollover, you could carry over up to $660 in 2025, depending on your plan.1,3 Any remaining money will be forfeited. Keep in mind that the amount you roll over doesn’t count against your yearly contribution limit.3,4 This means you can still contribute up to the maximum annual limit without any reduction due to the amount you rolled over.
What are the FSA eligibility requirements?
To contribute to an FSA, your employer must offer it to employees. Unlike health savings accounts (HSAs), which are individual accounts, FSAs are employer-established benefits. So if you’re self-employed, you won't be eligible for an FSA.3
Additionally, if you already have an HSA, you likely won’t be able to open a general health FSA. However, depending on the type of FSA offered, you may be able to contribute to an FSA and an HSA simultaneously. This will generally apply to a limited-purpose FSA (LP-FSA), a dependent-care FSA (DC-FSA), and a post-deductible FSA.5
To learn about the specific eligibility requirements for your account, consult with your employer.
What is the FSA spending deadline?
The deadline to spend the money in your FSA is typically December 31. However, your employer might give you the option to roll over unused funds up to a certain limit — in 2025, the limit is $660 — or provide a 2.5-month grace period. A grace period lets you use any remaining funds until mid-March of the following year.3,6
Make the most of your FSA during open enrollment
Open enrollment is a critical time in which you can enroll or make changes to your employee benefits, including FSAs. During this time, it’s a good idea to evaluate your healthcare needs for the upcoming year. Assessing your needs can help you determine how much you should contribute to an FSA. Just remember to stay within the contribution limits outlined by your employer or the IRS. (Outside of the open enrollment period, changes can only be made mid-year if you have a qualifying life event.)