IRS: Employees can contribute $3,300 to healthcare FSAs in 2025.

The IRS has reminded taxpayers that during the open enrollment period for flexible spending arrangements (FSAs), they can use tax-free dollars for medical expenses not covered by other health plans.

For the 2025 plan year, employees can contribute up to $3,300 through payroll deductions, which are exempt from federal income tax, Social Security tax, and Medicare tax. Employers may also contribute to an employee’s FSA, and if an employee’s spouse has a separate plan, they can each contribute up to the maximum, totaling $6,600 for the household.

Unused amounts in FSAs that allow carryover can roll over up to $660 into 2025, an increase from $640 in 2024. This carryover does not affect the maximum salary reduction contributions allowed.

Taxpayers should review their healthcare options during open enrollment to maximize savings. Eligible employees must act before their medical plan year starts; self-employed individuals are not eligible for FSAs.

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