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IRS Announces 2025 FSA, DCA, and Commuter Contribution Limits
2025 IRS Contribution Limits for Cafeteria Plans: FSAs, HSAs, Dependent Care, and Commuter Benefits.

The IRS has released updated 2025 contribution limits for various cafeteria plan accounts, including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Dependent Care FSAs, and Commuter Benefits. These adjustments allow employees to maximize pre-tax savings on essential expenses. Here’s a quick guide to the new limits for each account type.

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2025 Contribution Limits for Cafeteria Plans

• Healthcare FSA
  • Contribution Limit: $3,300 (up from $3,200 in 2024)
    Rollover Limit: $660 (up from $640 in 2024), allowing employees to carry over unused funds into the next year if offered by their employer.
• Dependent Care FSA (DCA)
  • Contribution Limit: $5,000 per household (or $2,500 per spouse if married and filing separately)
• Health Savings Account (HSA)
  • Contribution Limits:
    • Self-Only Coverage: $4,150 (up from $4,050 in 2024)
    • Family Coverage: $8,300 (up from $8,200 in 2024)
    •  Catch-Up Contributions (Age 55+): Additional $1,000
• Commuter Benefits
  • Transit Limit: $325 per month (up from $315 in 2024)
  • Parking Limit: $325 per month (up from $315 in 2024)
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Making the Most of the 2025 Contribution Limits

With these increased limits, employees have more opportunities to set aside pre-tax funds for healthcare, dependent care, and commuting expenses, helping to reduce taxable income while planning for the year ahead.

Our team is here to assist you in strategizing and maximizing your benefits. Please don’t hesitate to reach out for support in planning your 2025 benefits!