The IRS released Revenue Procedure 2024-40 announcing the adjusted contribution limits for health flexible spending accounts (Health FSAs), among other limits, for the 2025 calendar year.
The 2025 limits, as compared to the 2024 limits, are outlined below:
2025 | 2024 | |
Health FSA | $3,300 | $3,200 |
Maximum Health FSA Carryover Amount | $660 | $640 |
Dependent Care FSA | $5,000 | $5,000 |
Qualified Commuter/Parking Benefits | $325 | $315 |
Adoption Assistance Tax Credit | $17,280 | $16,810 |
In addition, the annual changes to the Affordable Care Act (ACA) maximum out-of-pocket limits were released earlier this year by the Department of Health and Human Services (HHS) in the Notice of Benefit and Payment Parameters, and are shown below:
2025 | 2024 | |
ACA Maximum Out-of-Pocket Limit | $9,200 (single)/ $18,400 (family) | $9,450 (single)/ $18,900 (family) |
As a reminder, the 2025 limits released earlier this year in IRS Revenue Procedure 2024-25 for health savings accounts (HSAs) and high deductible health plans (HDHPs) are provided in our blog, Sequoia Foreword: 2024 HSA & HDHP Limits Announced.
Employer Action Item
- Employers should ensure their systems, plan documents, and enrollment materials are updated with the 2025 limits.
- Employers should notify their employees of the new 2025 limits.
Additional Resources
- IRS Revenue Procedure 2024-40
- IRS Revenue Procedure 2024-25
- Notice of Benefit and Payment Parameters
- Sequoia Foreword: 2025 Benefit Limits: HSA, HDHP, and ACA
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