2025 health FSA, other health and fringe benefit limits now set

By Katharine Marshall & Dorian Z. Smith - Mercer’s Law & Policy Group | Originally posted here

IRS Rev. Proc. 2024-40 gives the 2025 contribution and benefit limits for health flexible spending arrangements (FSAs), qualified small-employer health reimbursement arrangements (QSEHRAs), long-term care (LTC) policies, transportation fringe benefits and adoption assistance programs. The 2025 figures reflect the increase in the average chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the 12 months ending Aug. 31, 2024, after applying statutory rounding rules.

Health FSA, QSEHRA and LTC limits

This table shows the 2025 adjusted amounts for health FSAs, QSEHRAs and qualified LTC policies, along with the limits for 2024 and 2023. The health FSA carryover limits shown reflect the maximum unused funds that can carry over to the next plan year.