The utmost Versatile Spending Account (FSA) contribution for 2025 is the utmost sum of money that a person can contribute to their FSA on a pre-tax foundation. The FSA contribution restrict is ready yearly by the Inner Income Service (IRS). For 2025, the utmost FSA contribution restrict is $3,050. This restrict applies to all varieties of FSAs, together with well being FSAs, dependent care FSAs, and transportation FSAs.
FSAs provide an a variety of benefits, together with lowering your taxable earnings and saving cash on healthcare and different certified bills. Contributing to an FSA will be an effective way to economize and scale back your tax legal responsibility. Nevertheless, you will need to word that FSA contributions are made on a pre-tax foundation, which implies that the cash you contribute to your FSA won’t be taxed. Nevertheless, if you don’t use the entire cash in your FSA by the tip of the 12 months, you’ll forfeit the unused funds.