Choosing your FSA contribution during open enrollment requires knowing the boundaries. The FSA limits set by the IRS determine the maximum you can contribute each year, how much you can carry over, and the rules around grace periods. For 2025, the healthcare FSA contribution limit is $3,300 per employee, up from $3,200 in 2024. These limits are adjusted annually for inflation.
Getting your election amount right matters because of the use-it-or-lose-it rule. Contribute too much and you risk forfeiting money at year-end. Contribute too little and you miss out on tax savings for expenses you end up paying with after-tax dollars.
2025 Healthcare FSA Contribution Limit
The IRS sets the maximum healthcare FSA contribution at $3,300 for 2025. This is a per-employee limit, meaning each eligible employee at a company can contribute up to this amount regardless of family size or filing status. If both spouses work for employers that offer FSAs, each spouse can contribute up to the maximum through their respective employers, for a combined household total of $6,600.
Your employer may set a lower maximum than the IRS allows. Some companies cap FSA contributions at $2,000 or $2,500 rather than the full IRS limit. Check your plan documents or ask your HR department about your specific plan’s maximum. The IRS limit is the ceiling, not a guarantee of what your employer offers. For a complete overview of how FSAs work, see our FSA guide.
FSA Carryover Limit
Employers who offer a carryover provision can let employees roll over up to $660 in unused FSA funds into the next plan year (2025 limit). This carryover amount is also adjusted annually for inflation. The carryover does not reduce your maximum contribution for the following year — you can still contribute the full $3,300 and carry over up to $660, giving you access to $3,960 in FSA funds.
Not all employers offer carryover. Some offer a grace period instead (up to 2.5 months after the plan year ends to incur expenses), and some offer neither. No employer can offer both carryover and grace period for the same FSA. Knowing which option your employer offers, if any, is essential for planning your election.
Dependent Care FSA Limits
The dependent care FSA is a separate account with different FSA limits. For 2025, the contribution limit is $5,000 per household for married couples filing jointly or single filers ($2,500 for married filing separately). Unlike the healthcare FSA, this limit is per household, not per employee. If both spouses have access to dependent care FSAs, their combined contributions cannot exceed $5,000.
Dependent care FSAs cover childcare, preschool, after-school programs, summer day camp, and elder care expenses that enable you to work. These are completely separate from healthcare FSAs — contributing to one does not affect the limits of the other. The dependent care FSA also follows use-it-or-lose-it rules, though the carryover provision does not apply to dependent care FSAs.
Limited-Purpose FSA Limits
A limited-purpose FSA (LPFSA), which covers only dental and vision expenses and is designed to pair with an HSA, has the same contribution limit as a regular healthcare FSA: $3,300 for 2025. The IRS does not differentiate between general-purpose and limited-purpose FSAs for contribution limit purposes.
If you have both an HSA and an LPFSA, the LPFSA contribution is in addition to your HSA contribution. For 2025, you could theoretically contribute $4,300 to your HSA (individual) plus $3,300 to your LPFSA, for a total of $7,600 in tax-advantaged healthcare savings. This combination maximizes your pre-tax benefit while preserving HSA eligibility.
How FSA Limits Have Changed Over Time
FSA contribution limits have increased steadily due to inflation adjustments. In 2020, the limit was $2,750. It rose to $2,850 in 2022, $3,050 in 2023, $3,200 in 2024, and $3,300 in 2025. The carryover limit has similarly increased, from $550 in 2020 to $660 in 2025. These increases are modest but help keep the FSA benefit relevant as healthcare costs rise.
The IRS announces new limits each fall, typically in October or November, in time for employers to update their open enrollment materials. Watch for the annual IRS announcement if you want to plan your election as soon as the new numbers are available.
Choosing the Right Election Amount
Your FSA election should be based on your expected out-of-pocket medical spending for the plan year. Start by reviewing last year’s spending: add up copays, prescriptions, dental expenses, vision costs, and any other medical spending. Factor in planned changes for the coming year, such as scheduled procedures, new prescriptions, orthodontic treatment, or expected changes in your family’s healthcare needs.
A conservative approach is to set your election at 80% to 90% of your expected expenses. This provides meaningful tax savings while building in a buffer against forfeiture. If your employer offers a carryover, you have $660 of cushion. If your employer offers a grace period, you have extra time to incur expenses. If your employer offers neither, be especially conservative — it is better to slightly underfund and pay a small amount with after-tax dollars than to lose money outright.
Employer Contributions to FSAs
Some employers contribute to employee FSAs as an additional benefit. Employer contributions count toward the annual IRS limit. If your employer contributes $500 to your FSA, your maximum employee contribution would be $2,800 (totaling $3,300 with the employer contribution). Employer FSA contributions are less common than employer HSA contributions but do exist, particularly in organizations trying to offset the impact of high-deductible health plans.
Check your benefits materials carefully to understand whether your employer makes FSA contributions and how they affect your personal contribution limit. Some employers make contributions conditional on the employee also contributing a certain amount.
Frequently Asked Questions
Can I contribute more than $3,300 to my FSA?
No. The $3,300 limit for 2025 is the IRS maximum, and it includes both employee and employer contributions. You cannot exceed this amount regardless of your medical expenses. If you need more tax-advantaged healthcare spending capacity, consider an HSA if you are eligible, or coordinate with your spouse’s FSA if applicable.
Does my FSA carryover count against next year’s limit?
No. Carryover funds do not reduce your contribution limit for the next year. If you carry over $500 and contribute $3,300, you have $3,800 available to spend, which is perfectly fine under IRS rules.
Can I change my FSA election mid-year?
Generally, no. FSA elections are locked for the plan year. You can only change your election mid-year if you experience a qualifying life event such as marriage, divorce, birth or adoption of a child, or a change in your or your spouse’s employment status. Check with your HR department about what qualifying events apply to your plan.
What if I leave my job — do I lose my FSA money?
Typically, yes. Your FSA generally ends when your employment ends, and any remaining balance is forfeited. You can submit claims for expenses incurred before your termination date. If you know you are leaving, try to use your FSA balance on eligible expenses before your last day.
The Bottom Line
Knowing the current FSA limits is the first step to maximizing your tax savings. For 2025, you can contribute up to $3,300 to a healthcare FSA and carry over up to $660 if your employer allows it. Base your election on realistic spending estimates, account for your employer’s carryover or grace period policy, and review your election each year as both the IRS limits and your medical needs change. A well-planned FSA election is one of the simplest ways to keep more money in your pocket while covering the healthcare costs you already have.