2025 FSA Limits and Commuter Limits Announced
The IRS released 2025 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits and more as part of Revenue Procedure 2024-40. These limits undergo annual adjustments to account for inflation.
2025 Medical FSA Contribution Limits (including limited and combination FSAs)
- 2024: $3,200 per year
- 2025: $3,300 per year
2025 Medical FSA Carryover
- 2024: $640 per year
- 2025: $660 per year
2025 Commuter Benefits Contribution Limits
- 2024: $315 per month
- 2025: $325 per month
2025 Adoption Assistance Limits
- 2024: $16,810 per year
- 2025: $17,280 per year
The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $17,280. This amount is the same as what may be excluded from the employee’s gross income for expenses incurred by an employer for qualified adoption expenses under the same program.
The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $259,190 and is completely phased out for taxpayers with modified adjusted gross income of $299,190 or more.
2025 Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) Limits
- 2024: $6,150 per year (Self-only), $12,450 per year (Family)
- 2025: $6,350 per year (Self-only), $12,800 per year (Family)
Previously Announced
2025 health savings account (HSA) limits
- 2024: $4,150 (Self-only), $8,300 (Family)
- 2025: $4,300 (Self-only), $8,550 (Family)
2025 HDHP Amounts/Limits
HDHP (self-only coverage)
- 2024: $1,600 (Minimum deductible), $8,050 (Maximum out-of-pocket limit)
- 2025: $1,650 (Minimum deductible), $8,300 (Maximum out-of-pocket limit)
HDHP (family coverage)
- 2024: $3,200 (Minimum deductible), $16,100 (Maximum out-of-pocket limit)
- 2025: $3,300 (Minimum deductible), $16,600 (Maximum out-of-pocket limit)
To recap:
- The 2025 medical FSA contribution limit will be $3,300 per year, which is a $100 increase from 2024.
- Employers can allow employees to carry over $660 from their medical FSA for taxable years beginning in 2025, which is a $20 increase from 2024.
- The monthly commuter benefits limit in 2025 for mass transit and parking is $325 per month.
- Employer contribution limits for QSEHRAs are $6,350 for self-only and $12,800 for families.
- 2025 HSA contribution limits were previously announced by the IRS. The HSA limit is $4,300 for an individual and $8,550 for families.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.