What are the 2025 FSA contribution limits?
Asked by: Osborne Reynolds | Last update: April 26, 2025Score: 4.1/5 (59 votes)
What is the maximum FSA contribution for 2025?
The IRS has increased the Flexible Spending Account (FSA) contribution limits for the Health Care Flexible Spending Account (HCFSA) and the Limited Expense Health Care FSA (LEX HCFSA). For 2025, participants may contribute up to an annual maximum of $3,300 for a HCFSA or LEX HCFSA.
What is the maximum contribution for 2025?
Highlights of changes for 2025. The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500, up from $23,000. The limit on annual contributions to an IRA remains $7,000.
What is the maximum HSA contribution for 2025?
The limit is $4,300 if you are single. The 2025 HSA contribution limit for families is $8,550. HSA users aged 55 and older can make an extra $1,000 to their HSAs. This amount will remain unchanged in 2025.
What is the transit limit for 2025?
TRANServe can adjust the transit benefit to the monthly maximum statutory limit of $325.00 for the transit benefit starting the January 2025 benefit cycle.
2025 FSA Limits: What You Need to Know
What are the FSA guidelines for 2025?
An employee who chooses to participate in an FSA can contribute up to $3,300 through payroll deductions during the 2025 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may also contribute to an employee's FSA.
What is the IRS deductible limit for 2025?
For family coverage in tax year 2025, the annual deductible is not less than $5,700, increasing from $5,550 in tax year 2024; however, the deductible cannot be more than $8,550, an increase of $200 versus the limit for tax year 2024.
What is the HSA plan for 2025?
The medical Flexible Spending Account (FSA) contribution limit is $3,300. The Healthcare Savings Account (HSA) contribution limits will increase to $4,300 for individuals and $8,550 for family coverage.
What is the maximum SEP contribution for 2025?
e. For tax year 2025 the annual limit on the amount of employer contributions to an employee's SEP-IRA is the smaller of $70,000 or 25% of the employee's compensation.
What is the maximum TSP contribution for 2025?
2025 TSP Contribution Limits
Standard Employee Contribution Limit: The limit for employees under 50 years old will increase to $23,500 (up from $23,000 in 2024), an additional $500 in 2025 toward your TSP, allowing you to grow your retirement savings more quickly.
What is the contribution limit for 2025?
The total contribution limit for 401(a) defined contribution plans under section 415(c)(1)(A) increased from $69,000 to $70,000 for 2025. This includes both employer and employee contributions. The annual elective deferral limit for 401(k) plan employee contributions is increased to $23,500 in 2025.
Can you carry over FSA funds in 2025?
For the 2025 benefit period, you can contribute up to a maximum of $3,300 - an increase of $100 from the 2024 benefit period. You may also carry over unused funds up to a maximum of $660 into 2026 - an increase of $20 from the 2024 benefit period, as long as you re-enroll.
Can both spouses have an FSA 2025?
If both you and your spouse have an FSA, you can each contribute up to $3,300 in your respective accounts in 2025. What you can't do is double-dip. If one spouse reimburses a medical expense through their FSA, the other spouse can't reimburse for the same expense.
What is the maximum FSA limit for 2025?
With the new 2025 contribution limit of $3,300, participants can allocate more funds toward managing their healthcare costs without the burden of additional taxes. Some FSAs allow for the carryover of unused amounts.
What is HSA Max for 2025?
2025 HSA contribution limits
The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage.
What is the maximum out-of-pocket limit for 2025?
For the 2025 plan year: The out-of-pocket limit for a Marketplace plan can't be more than $9,200 for an individual and $18,400 for a family.
What qualifies as a high-deductible health plan in 2025?
For calendar year 2025, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...
What happens to unused HSA funds?
Unlike many flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs), unused HSA funds automatically carry over to the following year. Even if your employer provided the account and made contributions, the account belongs to you — so any remaining funds are carried over every year.
What is the lifetime gifting limit for 2025?
Lifetime IRS Gift Tax Exemption
If a gift exceeds the $19,000 limit for 2025, that does not automatically trigger the gift tax. For 2025, the IRS allows a person to give away up to $13.99 million in assets or property over the course of their lifetime and/or as part of their estate.
Is Social Security going to be taxed in 2025?
Missouri and Kansas elected to stop taxing Social Security benefits in 2024, as did Kansas shortly thereafter, leaving only nine states in the union that will still tax benefits in 2025. Find out whether your current state (or dream retirement state) will be taxing your Social Security benefits.
What are the new 401k rules for 2025?
For 2025, eligible taxpayers can contribute $23,500 to their 401(k) account, up from $23,000 in 2024. The limit on catch-up contributions for 401(k)s in 2025 for taxpayers 50 and older is $7,500 — the same as it is in 2024, bringing the total contribution limit to $31,000 in 2025.
What are the payroll changes for 2025?
In 2025, many states, cities, and counties will implement minimum wage increases, with nearly 80% of these areas setting rates at $15 or higher. While larger companies may opt for a unified pay structure across states, smaller businesses operating on tighter budgets may face challenges.