Planning your open enrollment election starts with one number: how much can you contribute? The 2025 FSA limits set by the IRS allow employees to contribute up to $3,300 to a health care flexible spending account, a $100 increase over the 2024 limit of $3,200. While the change is incremental, it reflects the IRS’s annual inflation adjustment and adds to your tax-free medical spending capacity.
Getting this number right during open enrollment matters more than most employees realize. Contribute too little and you leave tax savings on the table. Contribute too much and you risk forfeiting unspent funds under the use-it-or-lose-it rule. Here’s everything you need to calculate the right amount.
Health Care FSA: $3,300 Maximum
The core number for 2025 is $3,300. This is the maximum amount an individual employee can elect to contribute to a general-purpose health care FSA during the plan year. Contributions are deducted from your paycheck before federal income tax, state income tax, and FICA payroll taxes, giving you pre-tax purchasing power for qualified medical expenses.
This limit applies per employee, not per family. If both you and your spouse have FSA access through separate employers, each of you can contribute up to $3,300. A dual-income household could theoretically set aside $6,600 in pre-tax medical funds between the two accounts.
Note that your employer may set its own cap below the IRS maximum. Some plans limit contributions to a lower amount for nondiscrimination testing compliance or administrative reasons. Confirm your plan’s specific limit during enrollment.
Carryover Limit: $660
For employers that offer the carryover provision, the maximum amount that can roll from one plan year to the next is $660 in 2025. This is up from $640 in 2024. The carryover provides a buffer against the use-it-or-lose-it rule, though it only protects a fraction of the total contribution limit.
The carryover does not reduce your new-year contribution election. If you carry over $660 and elect $3,300 for 2025, your total available balance is $3,960. The carried-over funds are simply added to your new plan year’s pool of spendable money.
Not all employers offer the carryover option. Some offer a grace period of up to 2.5 months instead, and some offer neither. The IRS prohibits offering both simultaneously, so your plan will have one or the other, or a strict use-it-or-lose-it deadline. Check your benefits documents to know which applies.
Dependent Care FSA: $5,000 Maximum
The dependent care FSA has a separate limit of $5,000 per household for married couples filing jointly ($2,500 if married filing separately). This amount is set by statute and is not adjusted for inflation, so it has remained unchanged for years. The dependent care FSA covers eligible childcare and adult dependent care expenses, including daycare, preschool, and day camp for children under 13.
Unlike the health care FSA, dependent care funds are available only as contributions accumulate rather than being front-loaded on day one. This means if you elect $5,000 and have only contributed $1,000 by March, your available balance is $1,000, not $5,000. This pay-as-you-go structure is an important planning consideration for families with large early-year childcare costs. For more on what this account covers, see our dependent care FSA eligible expenses guide.
How the 2025 Limits Compare to Previous Years
The health care FSA limit has increased steadily as the IRS adjusts for inflation. In 2021, the limit was $2,750. It rose to $2,850 in 2022, $3,050 in 2023, $3,200 in 2024, and now $3,300 in 2025. Over five years, the annual maximum has grown by $550, reflecting cumulative cost-of-living increases.
The carryover limit has tracked a similar path: $550 in 2021, $570 in 2022, $610 in 2023, $640 in 2024, and $660 in 2025. While these increases are modest year to year, they add up. An employee who has maxed out their FSA contribution every year since 2021 has sheltered an additional $2,750+ from taxes compared to someone who stuck with the 2021 amount.
Calculating Your Ideal Contribution
Start by listing your predictable medical expenses for the year. Include insurance copays for regular doctor visits, prescription medication costs, dental cleaning fees, vision exam charges, and any ongoing treatments. Total these recurring costs to establish your baseline.
Next, add planned expenses. If you know you’ll need new glasses, have a dental procedure scheduled, or are planning orthodontia for a child, include those costs. Factor in OTC medications, contact lens solution, sunscreen, and first-aid supplies that you purchase regularly.
Finally, consider the risk-reward tradeoff. Contributing close to the 2025 FSA limits maximizes your tax savings but increases your forfeiture risk if unexpected events reduce your medical spending. A conservative approach is to contribute 80% to 90% of your estimated expenses, leaving a margin of safety while still capturing most of the tax benefit. If your plan offers the $660 carryover, you can be more aggressive since any overage up to that amount rolls forward.
Tax Savings at the $3,300 Maximum
Contributing the full $3,300 delivers meaningful tax savings across multiple categories. For an employee in the 22% federal income tax bracket with a 5% state income tax rate, the breakdown looks like this: $726 saved in federal income tax, $165 saved in state income tax, and approximately $252 saved in FICA taxes (7.65%). The total tax savings is roughly $1,143, meaning your net cost for $3,300 in medical spending power is about $2,157.
Employees in higher tax brackets save even more. At the 32% federal rate, the federal tax savings alone on a $3,300 contribution is $1,056. The higher your marginal tax rate, the more valuable the FSA deduction becomes. This is a guaranteed, risk-free return on your medical spending that no investment account can match.
Key Rules to Remember
Your election is generally locked for the plan year. You can only change your contribution amount if you experience a qualifying life event such as marriage, divorce, birth of a child, or a change in employment status for your spouse. Outside of these events, the amount you choose during open enrollment is fixed.
Your full annual election is available on day one of the plan year, even though deductions happen gradually. If you elect $3,300 and need an expensive dental procedure in January, you can use the full amount immediately. This front-loading feature makes the health care FSA especially useful for large, early-year expenses.
The run-out period, typically 90 days after the plan year ends, is your window to submit claims for expenses incurred during the plan year. Don’t confuse this with the grace period. The run-out period allows you to file claims for expenses you already had; the grace period lets you incur new expenses against the prior year’s balance.
Frequently Asked Questions
Do the 2025 FSA limits apply to all employers?
The IRS maximum of $3,300 applies universally, but individual employers may set a lower limit for their plans. Your employer’s plan documents will specify the contribution maximum available to you. Always check your specific plan rather than assuming the IRS maximum applies.
Can I contribute to both a health care FSA and a dependent care FSA?
Yes. These are separate accounts with separate limits and separate eligible expenses. You can contribute up to $3,300 to a health care FSA and up to $5,000 to a dependent care FSA in the same plan year. The contributions are independent and cannot be transferred between accounts.
What if my employer contributes to my FSA?
Employer contributions to a health care FSA may or may not count toward the $3,300 employee limit, depending on plan design. Some plans treat employer contributions as additional funds on top of your election, while others include them in the cap. Contact your HR department or plan administrator to confirm how your plan handles employer contributions.
Is the FSA limit going up in 2026?
The IRS announces new limits each fall based on inflation adjustments. Historically, the limit has increased by $100 to $200 per year. The 2026 limit will be announced in late 2025, typically in October or November. Until then, plan based on the confirmed $3,300 limit for 2025.
Set Your 2025 FSA Election Wisely
The 2025 FSA limits give you up to $3,300 in pre-tax medical spending power, with a $660 carryover cushion if your employer offers it. Estimate your expenses, calculate the tax savings, and choose a contribution amount that balances maximum benefit with minimal forfeiture risk. For a comparison of FSAs and HSAs, read our HSA vs FSA guide. For a full list of what you can buy, visit our FSA eligible items guide. And as always, consult a tax professional for advice tailored to your specific financial situation.