Compliance

IRS Releases 2025 FSA and Commuter Limits

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 Contribution Limits (including limited and combination FSAs)

2024: $3,200 per year

2025: $3,300 per year

2025 Medical FSA Carry Over

2024: $640 per year

2025: $660 per year

2025 Commuter 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 that 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 Limits

2024: $4,150 (Self-only), $8,300 (Family)

2025: $4,300 (Self-only), $8,550 (Family)

2025 HDHP 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)

Continue reading

Newsletter

Subscribe below.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We respect your privacy.