The Internal Revenue Service recently released Revenue Procedure 2024-40 announcing certain cost-of-living adjustments for calendar year 2025. The dollar limit on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) is increasing to $3,300 (up from $3,200). If a cafeteria plan permits health FSA carryovers, the maximum amount that can be carried over to the 2026 plan is $660 (up from $640).
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Health Flexible Spending Account Limits by Tax Year |
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2025 |
2024 |
2023 |
2022 |
2021 |
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$3,300 |
$3,200 |
$3,050 |
$2,850 |
$2,750 |
For additional guidance on FSAs, please review IRS Publication 969.
If you have any questions, please contact your MedCost Account Manager.