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The 2025 restricted function FSA limits are the annual contribution limits for well being care bills that may be made to a restricted function versatile spending account (FSA). These accounts are supplied by employers to assist staff lower your expenses on certified medical bills, akin to physician’s visits, prescribed drugs, and dental care.

The boundaries for 2025 haven’t but been launched by the Inner Income Service (IRS), however they’re anticipated to be much like the boundaries for 2024. For 2024, the restrict for worker contributions to a restricted function FSA is $3,050. Employers might also contribute to the account, however the whole quantity that may be contributed by the employer and worker mixed is $5,450.

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Restricted-purpose FSAs, also called well being FSAs, are employer-sponsored health-savings accounts that permit staff to save lots of pre-tax {dollars} to make use of on certified medical bills.

In 2025, the contribution restrict for limited-purpose FSAs is ready at $3,050. This quantity is topic to alter yearly, so it is very important test together with your employer or confer with the IRS web site for probably the most up-to-date info.

Restricted-purpose FSAs supply a number of advantages, together with:

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